Cummins braving debt ceiling jitters with $275M engine filter unit IPO
Diesel engine maker Cummins is going to buck the recent initial public offering draught and bring its engine filtration unit to market on Friday.
Cummings priced the IPO of its unit to raise about $275 million on Thursday, defying volatile markets which are being shaken by uncertainty over a deal on the U.S. debt ceiling.
Atmus Filtration Technologies sold 14.1 million shares at $19.50 a piece, according to a company press release.
The price is at the midway point of the company’s previous $18 to $21 per share range.
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The offering values Atmus at $1.6 billion. The stock is scheduled to start trading on the New York Stock Exchange under the symbol ATMU.
Atmus provides filtration products for trucks, off-highway industrial equipment and power generation systems.
Cummins will control about 83% of the company’s shares after the listing.
Financial markets have been concerned over whether the White House and Republicans in Congress can reach a deal to raise the debt ceiling ahead of the June 1 deadline set by the U.S. Treasury.
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Elevated volatility in the markets has made it difficult to price IPOs.
Companies have raised about $2.2 billion in the first quarter this year, compared to more than $42.6 billion during the same period in 2021, according to Dealogic.
Johnson & Johnson brought its consumer health business Kenvue to market, raising $3.8 billion earlier this month in the largest IPO of this year.
Reuters contributed this report.