Atmus Filtration Technologies Inc., a spinoff of Cummins Inc., has successfully raised $275 million in its initial public offering (IPO) by pricing its shares in the middle of the marketed range. The Nashville-based company sold approximately 14 million shares at $19.50 each, within the $18 to $21 range. With this IPO price, Atmus has achieved a market value of around $1.6 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission.
This IPO marks a positive development in the market after a slow first quarter. Atmus is the seventh-largest IPO on a U.S. exchange this year. Another recent spinoff, Kenvue Inc., a consumer health products company of Johnson & Johnson, had the only IPO surpassing $1 billion in the U.S. this year, raising $4.37 billion.
Atmus specializes in Fleetguard products, including filters for commercial vehicles and various equipment used in agriculture, construction, mining, and power generation. The company operates in 150 countries and generated 51% of its net sales from the U.S. and Canada last year.
Under Cummins’ ownership, Atmus has experienced consistent growth in net sales over the past three years, reaching $1.56 billion in 2021 from $1.23 billion in 2020. Its net income in 2022 amounted to $170 million, representing a 19% increase compared to 2020.
Cummins will retain an 83% ownership stake in Atmus and continue to maintain control of the company after the IPO. The offering was led by Goldman Sachs Group Inc. and JPMorgan Chase & Co. As part of the transaction, Atmus engaged in a debt-for-equity exchange with the two banks, rather than Cummins selling its shares to the underwriters for cash.
Atmus plans to commence trading on the New York Stock Exchange under the ticker symbol ATMU. The successful IPO and capital raised will support the company’s future growth and expansion in the filtration technology market.