Kinder Morgan’s bumper IPO takes the lead in impressive 2011 equity market deals
Kinder Morgan’s $3.3 billion initial public offering wins a Euromoney Deals of the Year 2011 award
|$3.3 billion private equity-backed initial public offering
|Goldman Sachs, Barclays Capital
|return to the Global Deals of the Year index
The fate of another benchmark IPO last year could not have been more different: by the end of 2011 Kinder Morgan’s $3.3 billion IPO – which was launched in February – was the only top-10 global IPO that was trading above its issue price. The deal was the largest in the energy sector since 1998 and is one of the top-five private-equity-backed IPOs ever. Its sheer size in one of the most volatile years in the equity markets is impressive – particularly as it was led only by Goldman Sachs as left lead and Barclays Capital. But it is the structure that makes it unique. Kinder Morgan went private in 2007 via a management buyout funded by Goldman Sachs, Highstar Capital, Carlyle Group and Riverstone Holdings. Indeed it was Goldman that advised the firm, and, next to Rich Kinder, Goldman Sachs was the largest private-equity backer, and remains an investor.