Kinder Morgan shares trade 6 percent above IPO price

on February 11 2011 12:40 PM

Shares of Kinder Morgan Inc traded more than 6 percent above their initial public offering price in early trading, signaling strong investor appetite for the U.S. pipeline company's assets.

On Thursday, Houston based Kinder Morgan sold 95.5 million shares for $30 each in the largest U.S. energy IPO since 1998, according to Thomson Reuters data.

Backed by private-equity investors including Carlyle Group and Goldman Sachs Group Inc's buyout fund, Kinder Morgan upsized its IPO from the original plan to sell 80 million shares for $26 to $29 each.

Kinder Morgan, which originally filed to raise up to $1.5 billion, is the biggest U.S. energy IPO since Conoco Inc's $4.4 billion offering more than a decade ago.

The IPO is seen as a means for Kinder's private equity partners to monetize their investment and an opportunity for investors to access its vast network of pipelines spanning the United States and stretching 2,500 miles into Canada.

Shares of Kinder Morgan climbed $1.82, or 6.1 percent to $31.82 in morning trading on the New York Stock Exchange.

(Reporting by Anna Driver in Houston, additional reporting by Alina Selyukh in New York, editing by Gerald E. McCormick)

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