Delek US IPO Prices at $16 per Share, Says Underwriter

Company to raise $160 million on NYSE, where ticker symbol will be DK

TheMarker
Reuters
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TheMarker
Reuters

Oil refiner Delek US Holdings on Wednesday priced an initial public offering worth $160 million, according to an underwriter.

Delek U.S. is a subsidiary of Yitzhak Tshuva's Tel Aviv-traded Delek Group (TASE: DLEKG) empire.

The 10-million share offer sold for $16 each, at the high end of a $14 to $16 forecast range.

Israeli conglomerate Delek Group retains 79.8% of Delek US common stock, according to the filing with the U.S. Securities and Exchange Commission.

Delek US said it plans to use the proceeds for general corporate purposes and to pay down debt.

The company owns the La Gloria refinery near Tyler, Texas, which it fortuitously acquired just before the boom in oil refining margins.

It also operates 349 retail fuel and convenience stores under the brand names MAPCO Express, East Coast and Discount Food Mart.

Delek U.S. sells gasoline under its own brand as well as under brands of BP, Exxon, Shell and Chevron, according to the filing.

Lehman Brothers and Citigroup Global Markets Inc. were the lead underwriters on the deal.

Delek aims to list its shares on the New York Stock Exchange under the ticker symbol "DK."

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