IPO Pick of the Week: CVR Partners Expects 14.8% Dividend Payout

CVR Partners, LP (UAN) is scheduling a $250 million IPO with a market capitalization of $949 million at the price range mid-point of $13, for Friday, April 8, 2011 (see valuation metrics here).CONCLUSION -- UAN’s partnership projects a payout of 14.8% for the 12 months ending March 31, 2012, which looks achievable. The public will own 26% post-IPO. UAN is a nitrogen fertilizer spin-off from CVR Energy (CVI).PARENT -- CVR Energy, Inc. (CVI), the parent, has a market capitalization of $2.07 billion. The stock as increased 190% in the last six months. CVI refines, markets and transports transportation fuel, in addition to its nitrogen fertilzer business.CVI believes it is the only operation in North America that utilizes a petroleum coke gasification process to produce nitrogen fertilizer. Petroleum coke (often abbreviated pet coke or petcoke) is a carbonaceous solid derived from oil refinery coker units or other cracking... Read more

Older articles featuring CVI: