TULSA, Okla. (AP) - SemGroup LP, a private company that delivers natural gas and propane, says it will launch a publicly traded entity.
SemGroup, which employs nearly 2,000 people, was ranked last year by Forbes magazine as the nation's fifth-largest private company with $4.5 billion in assets.
Under the plan unveiled Friday, the Tulsa-based energy company would place some of its assets into a publicly traded partnership that would be listed on the Nasdaq Global Market under the ticker 'SGLP.'
The company's filing with the Securities and Exchange Commission proposes a public offering of 12.5 million units that would represent a limited partner interest in SemGroup Energy Partners LP.
SemGroup LP would remain a private company. The estimated $300 million proceeds of the initial public offering will be used to reduce debt of the parent company, officials said in a statement.
The new partnership, to be based in Tulsa, expects to make quarterly distributions of 33.75 cents per common unit, according to the SEC filing.
'We intend to acquire and construct a significant amount of additional midstream energy assets, including acquisitions form our parent and jointly with our parent,' the company wrote in the filing.
A company spokeswoman declined to comment further.
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