PAA Natural Gas Storage LP hopes to raise $200M in IPO; would be biggest offering this week

PAA Natural Gas Storage hopes to raise $200M

NEW YORK — PAA Natural Gas Storage LP hopes to raise about $200 million in what would be the biggest of this week’s three expected initial public offerings.

Software maker Convio Inc. and chip maker Alpha and Omega Semiconductor Ltd. are also planning IPOs this week.

The Houston company is a unit of Plains All American Pipeline LP. It operates the natural gas storage facilities Plains All American Pipeline acquired from Sempra Energy in 2005.

PAA Natural Gas Storage plans to use proceeds from the IPO, expected to be about $187.8 million, to repay debt owed to Plains All American Pipeline.

PAA Natural Gas makes money from renting natural gas storage services to its customers.

Last year, it earned $24 million on revenue of $72.2 million.

The underwriters are Barclays Capital, UBS Investment Bank, Citi and Wells Fargo Securities.

The company plans to list its shares on the New York Stock Exchange under the symbol “PNG.”

It expects to offer 10 million common units for $19 to $21 apiece.