Cummins spinoff Atmus revs up in debut

Atmus Filtration Technologies

26/05/2023 17:54

** Shares of Atmus Filtration Technologies Inc  ATMU.N ,
engine filtration unit of Cummins Inc  CMI.N , rises on Fri in
strong debut
    ** ATMU opens at $21.67 vs $19.50 IPO price. Shares last up 
14.3% at $22.29
    ** IPO of ~14.1 mln shares raises $275 mln after being
marketed at $18-$21, valuing Atmus at ~$1.6 bln
    ** Cummins owns 83% stake in Atmus, or 80.5% if full IPO
overallotment is exercised
    ** Atmus, as Cummins unit, grew net sales over past three
years from $1.23 bln in 2020 to $1.56 bln in 2022
    ** Cummins is Atmus's largest customer, accounting for 19%
of last year's sales, followed by Paccar Inc  PCAR.O  (16%) and
Traton SE  8TRA.DE  (12%), per the SEC filing
    ** Goldman Sachs and JP Morgan leading 12-firm underwriting
group on the IPO
    ** Cummins's stock last up 0.9% at $212.87 on Fri for
roughly $30 bln market cap, per Refinitiv data
    ** Atmus follows in footsteps of J&J's  JNJ.N  early-May
spinoff of its consumer health unit Kenvue Inc  KVUE.N , which
raised $3.8 bln in the biggest IPO since 2021

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))