VOC Energy Trust up in NYSE debut
VOC Energy Trust up in NYSE debut NEW YORK (Global Markets) - Shares of VOC Energy Trust (VOC.N), which invests in oil and natural gas production in Kansas and Texas, rose in their debut on the New York Stock Exchange on Thursday after the initial public offering priced at the top of the proposed range.Stock Market Predictions
Shares were at $22, or 4.8 percent above their IPO price in early trade on the New York Stock Exchange.
VOC Energy Trust raised $232.8 million in the IPO on Wednesday, selling 11.09 million trust units for $21 each. It had planned to sell the units for $19 to $21 each.
The trust was formed by VOC Sponsor, a privately held limited partnership. The Delaware statutory trust is expected to own a term net profit interest in the limited partnership's exposure to the oil and gas production in the two states, receiving 80 percent of the net proceeds.
Net proceeds will be used to repay debt, buy back some outstanding equity interests and pay cash distributions. The trust also plans to pay cash distributions to unitholders, expected to start on August 15.
Raymond James and Morgan Stanley led underwriters on the IPO.
(Reporting by Alina Selyukh, editing by Gerald E. McCormick)