NEW YORK ( TheStreet -- "Imaginative investment bankers" is how IPO Desktop President Francis Gaskins explains Rentech Nitrogen Partners' ( RNF) public offering.

The fertilizer business is a spin-off from parent company Rentech ( RTK) and the idea is to make market caps grow quickly too. The nitrogen fertilizer facility has been in operation since 1965 and has had a long consistent track record of producing nitrogen-based products for the corn belt.

Rentech Nitrogen is looking to sell 15 million shares with the pricing range set at $19 to 21 each, so it would raise $300 million at the midpoint, and enjoy a market cap of around $765 million. If all goes well, Rentech, the parent, will be harvesting cash as it will reap $226 million worth of the proceeds, along with $460 million in newly created limited partnership interests.

Rentech Nitrogen only gets $48 million and is spending $8 million on plant expansion, with the remaining $40 million going for working capital. But because it's a limited partnership, the company will be valued at the expected payout, and in this case, that's 11.7%. The question is whether Rentech Nitrogen can deliver that kind of yield when its competitors, CVR Partners ( UAN) and Terra Nitrogen ( TNH) pay 8.9% and 9.2% respectively. The parent company paid out nothing in the June quarter. Gaskins likes CVR Partners better than Rentech.

Meanwhile, Enduro Royalty Trust ( NDRO) is another IPO that may be a better deal for the insiders than it is for the unsuspecting public.

The oil trust reportedly priced its offering late Wednesday, selling 13.2 million units at $22 each to raise more than $290 million. That was below an expected range of $23-$25 per unit.

The company was assembled by oil industry veterans who buy properties from big names like Conoco-Phillips ( COP) and Denbury Resources ( DNR) and then re-package them to sell to the public.

The properties tend to be declining or "mature" oil fields that they get cheaply, but sell at a much higher price with the sophisticated players getting the best of the deal. The draw for the IPO is that Enduro says it will have a yield of 6.75%. Gaskins said, "This is basically a financial transaction to create net worth for the oil executives (and perhaps the investment bankers) putting this deal together."

-- Written by Debra Borchardt in New York.

>To contact the writer of this article, click here: Debra Borchardt.

>To follow the writer on Twitter, go to http://twitter.com/wallandbroad.

>To submit a news tip, send an email to: tips@thestreet.com.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

More from Opinion

Tuesday Turnaround: Micron, Autonomous Driving, and J.C. Penney

Tuesday Turnaround: Micron, Autonomous Driving, and J.C. Penney

Cable Stock Investors Should Keep an Eye On Wireless Broadband's Rise

Cable Stock Investors Should Keep an Eye On Wireless Broadband's Rise

Trump Blinks on China Trade War That's Looking Harder to Win

Trump Blinks on China Trade War That's Looking Harder to Win

Monday Madness: GE, China, and Micron

Monday Madness: GE, China, and Micron

Attention 60 Minutes: Google Isn't the Only Big-Tech Monopoly

Attention 60 Minutes: Google Isn't the Only Big-Tech Monopoly