Tags: Allison | transmission | ipo

Allison Transmission Ends Up Slightly in Public Debut

Thursday, 15 March 2012 05:21 PM

Shares of Allison Transmission Holdings Inc closed slightly higher in their public debut on Thursday after the company sold more stock than expected in its initial public offering.

The IPO of Indianapolis-based Allison sold at $23 a share, the midpoint of its range, raising $600.3 million on Wednesday. The company, which makes vehicle transmissions, sold 26.1 million shares after expecting to sell 21.7 million.

Allison shares ended up 40 cents, or 1.7 percent higher, at $23.40 on the New York Stock Exchange.

"I was surprised to see them add 5 million more shares last night because that's usually only done when the deal is red-hot," said Scott Sweet, managing partner with IPO Boutique. "This deal was never red-hot."

Carlyle Group LP and Onex bought Allison Transmission from General Motors Co for $5.6 billion in 2007. The private equity firms are selling all of the shares in the IPO, so Allison will not receive any proceeds.

In 2011, Allison's earnings topped $103 million, up from $30 million the prior year. Net sales increased 12 percent to $2.2 billion.

Allison holds a 62 percent share of the global market for medium and heavy-duty commercial vehicles.

Underwriters on the IPO included Bank of America Corp's Merrill Lynch, Citigroup Inc and J.P. Morgan.

© 2019 Thomson/Reuters. All rights reserved.

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Thursday, 15 March 2012 05:21 PM
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