Oct 25 (Reuters) - BP Midstream Partners' initial public offering was priced at $18 per share, according to a source close to the matter, below the expected price range of $19 to $21 each.
The 42.5 million share offering raised about $765 million and the company is scheduled to debut on the New York Stock Exchange under the symbol "BPMP" on Thursday.
At $18, BP Midstream, a unit of British energy company BP Plc, has a market value of about $1.9 billion.
BP Midstream is a master limited partnership (MLP) formed by London-based BP's U.S. pipeline unit and transports crude oil, refined products and diluents to customers under long-term agreements. (http://bit.ly/2ge6biF)
An MLP is a tax-advantaged structure often used by pipeline and other capital-intensive companies to distribute excess cash to investors in the form of tax-deferred dividends.
BP Midstream, which operates in Midwestern United States and in the Gulf of Mexico, posted net income attributable of $63 million for the six months ended June 30, on a pro forma basis.
Citigroup, Goldman Sachs, Morgan Stanley, Barclays are among the top underwriters to the IPO. (Reporting by Nikhil Subba in Bengaluru; Editing by Sriraj Kalluvila)