The float of Viva Energy, led by global energy trader Vitol, has been priced at the bottom end of the bidding range, valuing the oil refiner and marketer at $4.86 billion, according to two fund managers.
The initial public offering, Australia's biggest in nearly four years, was priced at $2.50 a share after institutional investors had been asked to bid within a range of $2.50 and A$2.65 a share.
Viva is likely to announce the pricing and how much of a stake the Vitol-led partnership will retain upon listing on Thursday.
Fund managers who took part in the Viva IPO said it was reasonably priced and appeared to have received good demand.
"It's a good company. The industry dynamics are favourable and it's run by a capable management team," said an analyst with a Sydney-based fund manager.
Viva Energy was built from Royal Dutch Shell's former refinery in Geelong, near Melbourne and a network of around 1,165 petrol stations in Australia, which Vitol bought for $2.6 billion in 2014.
Vitol and its unnamed partners have since spent over $1 billion improving the business, including buying Shell's jet fuel operations in Australia, and are now looking to cash in.
