The pricing is in line with the earlier IPO estimate of $200.00-$241.50 million.
Industry sources told OPIS in April that the private logistics company, which has a vast global operations stretching from Asia to Europe to the U.S., chose the U.S. for its IPO because it could avoid double taxation and it could get a favorable valuation for its IPO, and it could raise capital efficiently in this equity market.   

Also, the capitalization of $200 million appears to be small, considering the charges of a few million dollars to be paid to investment banks for the IPO. The registration fee for the IPO was $23,220.   
The capitalization value could rise significantly beyond the $200 million estimate if the company stock receives favorable price valuation and the IPO is oversubscribed.
Oiltanking is expected to receive estimated net proceeds of about $183 million from this offering after deducting the estimated underwriting discount and offering expenses.   
The proceeds will be used to repay intercompany indebtedness owed to Oiltanking Finance B.V. in the amount of about $119.5 million.     
Also, the IPO will reimburse Oiltanking Finance B.V. for about $7.1 million of fees incurred in connection with our repayment of such indebtedness.   Oiltanking will make a distribution to Oiltanking Americas in the amount of $33 million and provide the company with a working capital of $23.4 million.   
According to the IPO filing, Oiltanking has an annual revenue of $29.955 million and net income of $7.62 million.   Total asset value is at $304.97 million, and stockholders’ equity is at $111.687 million.   The new stock will trade under the symbol “OILT” on the New York Stock Exchange.   
Oiltanking’s core assets are located along the upper Gulf Coast of the United States on the Houston Ship Channel and in Beaumont, Texas.    
Its 12.1-million-bbl Houston terminal stores 64% crude, 26% heavy petrochemical feedstocks, 7% clean products and 3% fuel oil. Its 5.7-million- bbl Beaumont terminal stores 59% clean products, 40% vacuum gasoil and 1% fuel oil.   The company’s cash flows are primarily generated by fee-based storage, terminaling and transportation services that it performs under multi-year contracts with its customers.   
It does not take title to any of the products it stores or handles on behalf of its customers and, as a result, is not directly exposed to changes in commodity prices. The main competition at its Houston terminal location for crude oil handling and storage are two other terminals operated by Enterprise Products Partners and Houston Fuel Oil Terminal Company.   
Oiltanking currently operates the only independent vacuum gasoil and clean petroleum products handling and storage service businesses in the Beaumont/Port Arthur petrochemical and refining complex.   
The company anticipates that any competition in those areas would come from the entry of a new competitor into the region.   
“The competitiveness of our service offerings could be significantly impacted by the entry of new competitors into the markets in which our Houston and Beaumont terminals operate,” the company said.   
“We believe, however, that significant barriers to entry exist in the crude oil and refined products terminaling and storage business, particularly for marine terminals.

These barriers include significant costs and execution risk, a lengthy permitting and development cycle, financing challenges, shortage of personnel with the requisite expertise and the finite number of sites suitable for development,” it added.