NEW YORK (AP) -- Valero Energy Partners is rising in its first day as a publicly traded company.
Shares of the oil pipeline owner climbed $4.94, or 21.5 percent, to $27.94 in midday trading on Wednesday.
The San Antonio company was formed in July by refinery operator Valero Energy Corp. to own, operate and develop pipelines, terminals and other transportation and logistics assets. It owns properties in the Gulf Coast and Midwest that are integral to operating Valero's refineries in Texas and Tennessee. Valero Energy Partners makes money by charging for transporting crude oil and refined petroleum products.
The initial public offering of 15 million common units priced at $23 each, above the projected range of $19 to $21 per unit.
Valero Energy Partners LP raised $345 million from the offering.
The underwriters have a 30-day option to buy up to an additional 2.3 million units.
The units are trading on the New York Stock Exchange under the "VLP" ticker symbol.
The offering is expected to close on Monday.
When the offering closes, the public will own a 25.5 percent limited partner interest in the company, or 29.4 percent if the underwriters fully exercise their option. Valero will own the remaining interests in Valero Energy Partners through some subsidiaries. It will also have a 2 percent general partner interest.