SunCoke Energy (NYSE: SXC) opened on the New York Stock Exchange on Thursday at $17 a share its first day trading on the market, an increase of around 6% from its IPO.
SunCoke processes metallurgical coal to make coke, a material necessary in the steelmaking process.
It is a spin off of Sunoco (NYSE: SUN), the Philadelphia-based oil refiner.
And on Wednesday, in its initial public offering, SunCoke sold 11.6 million shares for $16 each, the center of the projected range of $15 to $17 per share.
The company raised around $185.6 million in this IPO, cutting down Sunoco’s stake in the company to around 83.4%.
Sunoco plans to give its remaining ownership to shareholders over the next year.
SunCoke currently has four operating coking plants in the United States, as well as one plant in Brazil.
Construction is underway for a fifth plant, located in Ohio. That plant is expected to begin operations this year.
In addition, SunCoke is the owner and operator of coal mines in Virginia and West Virginia, according to the Wall Street Journal. The coal from these mines goes to their coke production plants.
Former CEO of General Motors, Frederick “Fritz” Henderson, is now SunCoke’s CEO.
The primary customers for SunCoke’s coking coal are ArcelorMittal (NYSE: MT), the United States Steel Corp (NYSE: X), and AK Steel Holdings Corp (NYSE: AKS).
SunCoke’s prices hit a daily high of $18 per share today.
The IPO was managed by Credit Suisse Group AG (VTX: CSGN), Bank of America Corp (NYSE: BAC), and Goldman Sachs Group Inc (NYSE: GS).
The company has also sold $400 million in bonds, set to mature in August 2019.
That’s all for now,