Cummins spinoff Atmus set to debut after midpoint IPO pricing

Atmus Filtration Technologies

26/05/2023 13:49

** Cummins Inc's engine filtration unit Atmus Filtration
Technologies Inc  ATMU.N  poised to debut on Fri after IPO gets
done at the midpoint
    ** IPO of ~14.1 mln shares priced at $19.50, vs $18-$21
marketed range, for $275 mln raise
    ** Atmus's shares to begin trading on the NYSE with ticker
"ATMU"
    ** Post IPO, engine maker Cummins  CMI.N  owns 83% stake in
Atmus, or 80.5% if full overallotment is exercised
    ** As a Cummins unit, Atmus's net sales grew 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
    ** IPO values Atmus at ~$1.6 bln. Cummins's stock on Thurs
closed at $210.96, down 13% YTD, for ~$30 bln market cap, per
Refinitiv
    ** Goldman Sachs and JP Morgan leading 12-firm underwriting
group on the IPO
    ** 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))