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Shamrock IPO up 14%
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April 10, 2001: 11:43 a.m. ET
Texas pipeline operator, week's first IPO, gains $3.50 in NYSE debut
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NEW YORK (CNNfn) - Shamrock Logistics LP, a petroleum pipeline operator, had more than luck in its debut Tuesday, rising 14 percent.
Shamrock Logistics gained $3.50 to $28 in its first day of trade on the New York Stock Exchange.
San Antonio-based Shamrock (UDL: up $3.50 to $28.00, Research, Estimates) came in above its expected range, selling 4.5 million units at $24.50 each via lead underwriter Goldman Sachs late Monday. The deal had been raised several times. Last week the company had planned to sell 4.5 million units at $22-to-$24, a boost from $21-to-$23 range filed previously. Last October, the company planned to sell 4 million units at $19-to-$21 apiece.
 Shamrock Logistics, a limited partnership, was formed to own and operate the crude oil and refined product pipeline of Ultramar Diamond Shamrock Corp. (UDS: Research, Estimates). The company has assets in Texas, Oklahoma, New Mexico and Colorado.
Because it is a unit deal, Shamrock is not followed by many IPO analysts. Shamrock plans to pay a distribution of 60 cents a quarter to its general partners, a near 10 percent dividend yield.
"For the most part this really attracted income-oriented investors," IPO Value Monitor analyst Steve Tuen said. "Shamrock's business is relatively stable but there are some risks involved. The company depends on Ultramar and increased delivery of oil."
Shamrock does not own any of the oil it transports through its pipeline, so it is not exposed to risks of fluctuating commodity prices, the company said in an SEC filing. Shamrock had $41.2 million pro forma income on $92.1 million revenue in 2000. 
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