By Max Clarke
Kinder Morgan, Inc. today announced that it has the initial public offering of 95,466,600 shares of its common stock at $30.00 per share. All of the common stock being sold in the offering is being sold by existing investors, consisting of funds advised by or affiliated with Goldman, Sachs & CoHighstar Capital LP, The Carlyle Group and Riverstone Holdings LLC.
No members of Kinder Morgan management are selling in the offering, and Kinder Morgan will not receive any proceeds from the offering. The selling stockholders have granted the underwriters a 30-day option to purchase up to 14,319,990 additional shares of common stock. The common stock will begin trading on Friday, February 11, 2011 on the New York Stock Exchange (NYSE) under the symbol "KMI." The offering is expected to close on February 16, 2011.
Based on demand for the shares, the size of the offering was increased above the previously announced 80,000,000 shares, and the offering price per share was increased above the estimated range of $26.00 to $29.00.
Upon conclusion of the offering, common stock owned by the public will represent an approximately 13.5% interest in Kinder Morgan, Inc., or approximately 15.5% if the underwriters exercise their option to purchase additional shares of common stock in full. Goldman, Sachs & Co. and Barclays Capital are acting as joint book-running managers for the offering. BofA Merrill Lynch, Citi, Credit Suisse, Deutsche Bank Securities, J.P. Morgan, Wells Fargo Securities, Madison Williams and Company, Morgan Keegan, Raymond James, RBC Capital Markets and Simmons & Company International are acting as co-managers for the offering.