Cummins engine filter unit valued at $1.8 billion in strong market debut
By Jaiveer Shekhawat and Echo Wang
(Reuters) -Atmus Filtration Technologies Inc, the filtration business of U.S. diesel engine maker Cummins Inc, fetched a valuation of $1.8 billion in a strong market debut on Friday.
Shares of Atmus opened at $21.67, up 11% from their initial public offering price of $19.5 a share.
Atmus raised about $275 million by selling 14.1 million shares. The company had previously guided the IPO could be priced at between $18 and $21 per share.
"(The) rationale for separating the business is ... that both companies can allocate their capital according to the strategic growth needs of each individual business," Atmus Chief Executive Steph Disher told Reuters.
Financial markets have been on edge as the deadline to raise the U.S. government's debit limit inches closer. There has been some progress in the talks between the White House and Republicans, as the June 1 deadline set by the U.S. Treasury looms.
Atmus joins a growing list of new entrants to U.S. stock exchanges which are being viewed as a sign of a thawing IPO market.
Earlier this month, Johnson & Johnson Inc's consumer health business, Kenvue Inc, went public, becoming the largest public offering since Rivian Automotive Inc's IPO in 2021.
Columbus, Indiana-based Cummins will now control about 83% of the company's shares.
Cummins first announced plans to explore "strategic alternatives" for its filtration business, including spinning it off into a separate company, in August 2021.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Maju Samuel)