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Wednesday, June 18, 2014

Shell Midstream files for US IPO, (NYSE: RDS-B)

Shell Midstream Partners LP, a master limited partnership formed by Royal Dutch Shell Plc, filed with U.S. regulators on Wednesday to raise up to $750 million in an initial public offering of common units.The master limited partnership (MLP) structure allows companies to raise money in the stock market while having income taxed only at the unit holder level, avoiding corporate income taxes.Shell Midstream said in its IPO prospectus it plans to use proceeds from the offering to acquire stakes in some pipeline companies from Shell Pipeline Company LP, a U.S. unit of Royal Dutch Shell, in exchange for cash distribution.Shell Midstream's assets will include a 43 percent stake in Zydeco Pipeline Company LLC, a 28.6 percent stake in Mars Oil Pipeline Company and a 49 percent stake in Bengal Pipeline Company LLC.

Shares of RDS-B fell by 0.4% or $-0.34/share to $84.53. In the past year, the shares have traded as low as $65.02 and as high as $87.59. On average, 612736 shares of RDS-B exchange hands on a given day and today's volume is recorded at 328783.