Allison Transmission‘s IPO a success with $600.3 million raised

Article by Anita Panait, on March 16, 2012

Allison Transmission Holdings Inc. successfully held its initial public offering, selling 26.1 million shares at a midpoint of $23 and raising $600.3 million. Allison had expected to sell around 21.7 million shares at the IPO, but immense interest of the public on the company brought the numbers to 26.1 million. Allison shares closed up 40 cents today, at $23.40 on the New York Stock Exchange. Allison, however, is not bound to receive any cash from the IPO, since the shares sold to the public were all owned by private equity firms Carlyle Group LP and Onex. The firms acquired Allison from General Motors Co. for $5.6 billion in 2007. Allison chief executive Lawrence Dewey said that the opportunity for the company’s financial sponsors to see some of the gains on the investment is well deserved. Scott Sweet, managing partner with IPO Boutique said that Allison topped the expected IPO with more than 5 million additional shares, since this situation only occurs when a deal is red-hot, noting that Allison’s was not. The company posted a $73 million increase in earnings from $30 million in 2010 to $103 million in 2011. The company also posted 12% increase in net sales to $2.2 billion. Allison currently holds 62% percent share of the global market for medium and heavy-duty commercial vehicles.

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