PBF Logistics Shows Strength in IPO

PBF Logisitics (NYSE: PBFX) proves there are still signs of life in the initial public offering (IPO) market.

The 13.7 million share offering priced last night at $23 per share, above the $19 to $21 range. On Friday morning, the stock opened at 9:40 am at $28.00 per share, 21 percent above the offering price. Bookrunners for the offering are Barclays, Citigroup, Credit Suisse, Deutsche Bank, Morgan Stanley, UBS and Wells Fargo.

Early trading looked bleak as the stock tumbled from $28.00 to a low of $26.75 within an hour of the open. As the stock bottomed out, volume picked up as traders rushed in, pushing it to $28.20, near the $28.30 high. During the final minutes of trading, the stock sold off to close at $27.68, a 20 percent gain for IPO investors.

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According to a recent filing by the company, $215 million of the offering will be used to invest in short-term Treasury securities while awaiting use in capital expenditures. The money can be used for maintenance, expansion, or investment expenditures.

PBF Logistics is a master-limited partnership formed by PBF Energy (NYSE: PBF) to lease, own, and operate crude oil and petroleum product terminals, pipelines and storage facilities.

The product terminals, also known as oil depots, are used as a storage location, typically near refineries, pipelines, and other transportation hubs to support the movement of petroleum products to end users.

Disclosure: At the time of this writing, the author holds no positions in the above securities.

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