Cummins Spinoff Atmus Raises $275 Million in IPO
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. spinoff rose 11% in its trading debut after raising $275 million in an initial public offering priced in the middle of a marketed range.
, which sold for $19.50 in the IPO, opened trading May 26 at $21.67. They closed at $21.65 in New York trading, giving the Nashville, Tenn.-based company a market value of $1.8 billion.
The listing, the seventh-biggest on a U.S. exchange this year, adds to a gradually brightening market after a dismal first quarter, which was the slowest start to a year since 2016, according to data compiled by Bloomberg. Atmus follows the trading debut this month by another spinoff, Johnson & Johnson’s consumer health products company Kenvue Inc. Kenvue’s $4.37 billion offering, including so-called green-shoe shares, has been the only IPO to top $1 billion in the U.S. this year.
include fuel, air, hydraulic and other filters for commercial vehicles as well as agricultural, construction, mining and power-generation equipment. Reaching 150 countries, the company derived 51% of its net sales last year from the U.S. and Canada.
As a business within Cummins, the unit’s net sales have grown over the past three years, from $1.23 billion in 2020 to $1.56 billion last year, according to the filings. Its $170 million in net income for 2022, though down slightly from the previous year, was a 19% increase from 2020.
Cummins owns 83% of Atmus’ shares and will continue to control the company, according to filings with the U.S. .
The offering was led by Goldman Sachs Group Inc. and JPMorgan Chase & Co. As part of the transaction, the spinoff of Atmus included a debt-for-equity exchange with the two banks, rather than Cummins selling its shares to the underwriters for cash.
Atmus shares are trading on the under the symbol .
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