Diesel engine maker Cummins is set to bring an engine filtration unit to market on Friday, breaking a recent initial public offering draft.
Cummings on Thursday priced the unit’s IPO to raise about $275 million, bucking volatile markets rocked by uncertainty over the U.S. debt ceiling deal.
Atmus Filtration Technologies sold 14.1 million shares at $19.50 per share, according to the company’s press release.
The price is in the middle of the company’s historical range of $18 to $21 per share.
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The proposal would value Atmus at $1.6 billion. The shares will begin trading on the New York Stock Exchange under the symbol ATMU.
Atmus offers filtration products for trucks, off-highway industrial equipment and power generation systems.
After going public, Cummins will control about 83% of the company’s shares.
Financial markets are worried about whether the White House and Republicans in Congress will be able to reach a deal to raise the debt ceiling before the June 1 deadline set by the U.S. Treasury Department.
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Increased market volatility has made IPO pricing difficult.
Companies raised about $2.2 billion in the first quarter of this year, compared with more than $42.6 billion in the same period in 2021, according to Dealogic.
Johnson & Johnson brought its consumer health business Kenview to market earlier this month, raising $3.8 billion in its biggest IPO of the year.
Reuters contributed to this report.