SUGAR LAND, Texas (AP) -- CVR Refining LP on Tuesday said it expected that its initial public offering could raise as much as $520 million.
The Sugar Land, Texas-based company is a refining subsidiary of CVR Energy Inc., a fuel and fertilizer maker controlled by activist investor Carl Icahn.
CVR Refining plans to sell 20 million common units representing limited partner interests for between $24 and $26 each. The banks managing the deal may buy 3 million more units, bringing total potential proceeds to $598 million.
After the offering, CVR Energy Inc. will own about 86 percent of CVR Refining's outstanding units. Icahn's Icahn Enterprises LP has also said it may buy up to 4 million units in the offering, giving Icahn a 2.7 percent stake in CVR Refining.
CVR Energy said it plans to use the proceeds from the offering to pay down debt, for maintenance and environmental payments and for expenses of its Wynnewood refinery in the fourth quarter
It plans to list the units on the New York Stock Exchange under the symbol "CVRR."