Kinder Morgan's Giant IPO

Kinder Morgan
Kinder Morgan

So much for the death of the IPO.

The 95.5 million shares of the pipeline company Kinder Morgan hit the streets at $30 this morning and immediately popped 6 percent.

The IPO price, which was higher than expected, will pour about $2.8 billion into the coffers of the private equity owners, including Goldman Sachs and the Carlyle Group.

Kinder Morgan originally plan to sell 80 million shares for $26 to $29 each, raising about $1.5 billion.

The company is still majority owned by its private equity backers. According to Shira Ovide at Deal Journal, Goldman Sachs funds are pulling in about $9.54 million in cash, while holding on to a stake valued at $4.4 billion. Carlyle and Riverstone are taking in $421 million, while holding a $1.9 billion stake. Highstar Capital got $603 million, and holds a $2.8 billion stake.

Everybody and their brother got a piece of this deal. "Goldman Sachs and Barclays Capital are acting leading the IPO. BofA Merrill Lynch, Citigroup, Credit Suisse, Deutsche Bank, J.P. Morgan, Wells Fargo, Madison Williams and Company, Morgan Keegan, Raymond James, RBC Capital Markets and Simmons & Company International are acting as co-managers for the offering," Ovide writes.

Companies mentioned in this post:

Bank of America


Credit Suisse

Deutsche Bank


Wells Fargo

Raymond James



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