Philadelphia Energy Solutions IPO: Everything You Need to Know

Philadelphia Energy Solutions IPOPhiladelphia Energy Solutions Inc. (NYSE:PESC) is going public on Thursday August 6th. Here’s what investors need to know about its upcoming initial public offering (IPO). (Source: The Securities and Exchange Commission, July 27, 2015.)

Who is Philadelphia Energy Solutions?

Philadelphia Energy Solutions was founded as a result of a partnership between the Carlyle Group LP (NASDAQ:CG) and Sunoco LP (NYSE:SUN) in 2012. It has two operating subsidiaries; Refining and Logistics. The refining segment operates the 190,000 barrel-per-day (bpd) Girard Point facility and the 145,000 bpd Point Breeze facility. The Philadelphia refining complex is the tenth largest in the U.S. The logistics segment operates a crude oil rail unloading terminal with a capacity of unloading 280,000 bpd.

What is Philadelphia Energy Solutions’ Revenue?

Philadelphia Energy Solutions generated $13.3 billion in revenue in 2014, which was 2.8% less compared to the $13.6 billion in 2013. Despite a slight decline in revenue, the company managed to turn profitable, from a net loss of $102.9 million in 2013 to a net income of $143.6 million.

The decline in top line numbers continued to this year. In the first quarter of 2015, net sales came in at $1.9 billion, a 36.8% decline year-over-year. Net income, on the other hand, kept growing from $22.9 million in the year-ago period to $36.5 million in Q1 2015.

What is Philadelphia Energy Solutions’ IPO Price?

Philadelphia Energy Solutions expects its shares to be priced between $15.00 and $18.00 apiece.

What is Philadelphia Energy Solutions’ Stock Symbol?

Philadelphia Energy Solutions plans to list its shares on the New York Stock Exchange (NYSE) under the ticker symbol “PESC.”

How Much Money Will Philadelphia Energy Solutions’ IPO Raise?

Philadelphia Energy Solutions plans to issue 11.77 million shares. At share prices between $15.00 and $18.00 a share, the IPO would raise approximately $194.2 million at midpoint.

Counting in the 3.38 million shares that existing stockholders are selling, the total value of the IPO would be around $250 million at midpoint.

How Will Philadelphia Energy Solutions Use the Money?

Philadelphia Energy Solutions intends to use the net proceeds from the IPO to purchase 11.77 million common membership units in Philadelphia Energy Solutions LLC from PESC Company LP at a per-unit price equal to the IPO price in the offering. PESC Company would distribute the proceeds to Carlyle, PES Equity, and certain members of Philadelphia Energy Solutions’ management.

What is Philadelphia Energy Solutions’ IPO Date?

Philadelphia Energy Solutions is expected to go public on Thursday August 6, 2015.