Pennsylvania based Sunoco Inc has announced the filling of the initial public offering for shares of its subsidiary SunCoke Energy Inc with the Securities & Exchange Commission. However, the number of shares on offer and the price range is yet to be decided.

This move is in regard to the proposed spin off plan of the metallurgical coke manufacturing business, SunCoke, from the parent company. The announcement of the separation was made in June 2010.

Sunoco will continue to hold on to about 80% of SunCoke shares, post offering. The balance of the stock will be distributed among Sunoco shareholders in a tax free spin off. Sunoco expects to complete the entire proceedings of the IPO in 2011.

Following the separation, two independent trading companies will be created. Sunoco will be involved with Refining, Supply, Logistics and Retail Marketing businesses and emerge as a leading supplier of transportation fuels.

The offshoot, on the other hand, will transform itself into a major, high class metallurgical coke manufacturer operating in the US and abroad. SunCoke will operate from the newly constructed plant in Middletown, Ohio, with a slated production capacity of 550,000 tonnes of coke and 46 MW of electricity annually.

Officials said that "We expect this split to enhance the value of Sucono shares. The company will likely follow a well-coordinated strategic plan, invest in growth opportunities and strengthen the balance sheet post separation."