Diamondback's Rattler raises $665M in biggest energy IPO of 2019

(BY: MICHAEL HYTHA, BLOOMBERG) -- Rattler Midstream Partners LP rose slightly in its trading debut after raising $665 million in the biggest energy initial public offering of the year.

Shares opened at $18.06 in New York, 3.2% above their IPO price. The stock traded up 2.8% to $17.99 at 11:13 a.m., valuing Rattler at $2.8 billion.

The Midland, Texas-based pipeline company sold 38 million shares at $17.50 each, pricing an increased number of shares in the middle of its targeted range, according to a statement Wednesday. The company had marketed 33 million shares for $16 to $19 apiece.

Rattler was formed by Diamondback Energy Inc. to own, operate and acquire midstream assets in parts of the Permian Basin. Diamondback will retain about 76% of the voting rights in the company through Class B shares, according to the filing.