Nashville-based Atmus Filtration Technologies Inc., a spinoff from Cummins Inc., successfully completed its initial public offering (IPO), pricing its shares at $19.50 each. The company raised a total of $275 million, placing its market value at approximately $1.6 billion. This IPO marks the seventh-largest listing on a US exchange this year, contributing to the resurgence of the market following a slow start to the year.
Atmus Filtration Technologies sold around 14 million shares during the IPO, with the share price falling within the marketed range of $18 to $21 per share. The company’s market value is based on the outstanding shares listed in its filings with the US Securities and Exchange Commission.
This listing adds to the positive momentum of the market after a lackluster first quarter, which witnessed the slowest start to a year since 2016. The data compiled by Bloomberg indicates a steady recovery, and Atmus Filtration Technologies joins the recent trading debut of another spinoff, Kenvue Inc., a consumer health products company under Johnson & Johnson. Kenvue’s IPO raised an impressive $4.37 billion, making it the only IPO this year to surpass the $1 billion mark in the US.
Atmus Filtration Technologies specializes in Fleetguard products, including filters for commercial vehicles, agricultural and construction equipment, mining machinery, and power-generation systems. With its products reaching customers in 150 countries, the company generated 51% of its net sales from the US and Canada in the previous year.
Under Cummins’ umbrella, Atmus experienced consistent growth over the past three years. Its net sales increased from $1.23 billion in 2020 to $1.56 billion in the following year. Despite a slight decline compared to the previous year, Atmus achieved a 19% rise in net income, amounting to $170 million in 2022.
Cummins, the parent company, will retain 83% ownership of Atmus Filtration Technologies even after the IPO, ensuring continued control over the company’s operations.
Leading the IPO is a joint effort by Goldman Sachs Group Inc. and JPMorgan Chase & Co. The transaction between Atmus and the two banks involves a debt-for-equity exchange, a departure from Cummins selling its shares to the underwriters for cash.
The shares of Atmus Filtration Technologies are scheduled to commence trading on the New York Stock Exchange on Friday under the ticker symbol ATMU.
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Atmus Filtration Technologies: Pioneering Filtration Solutions for Global Industries
Atmus Filtration Technologies Inc., a spinoff from Cummins Inc., is set to revolutionize the filtration industry with its diverse range of Fleetguard products. With a successful IPO that raised $275 million and a market valuation of $1.6 billion, Atmus aims to solidify its position as a global leader in providing high-quality filters for various sectors.
Harnessing advanced technology and industry expertise, Atmus’s comprehensive filtration solutions cater to commercial vehicles, agricultural machinery, construction equipment, mining operations, and power-generation facilities. The company’s commitment to quality and innovation has propelled its net sales growth, with a steady increase from $1.23 billion in 2020 to $1.56 billion in the following year.
Despite global economic challenges, Atmus Filtration Technologies demonstrated resilience, recording a remarkable 19% increase in net income in 2022, amounting to $170 million. The company’s ability to adapt and thrive in the ever-evolving market underscores its potential for continued success.
Under the strategic guidance of Cummins, Atmus Filtration Technologies is well-positioned to maintain its trajectory of growth and innovation. With Cummins retaining 83% ownership even after the IPO, Atmus benefits from the support and resources of a renowned industry leader.
The successful completion of Atmus Filtration Technologies’ IPO marks a significant milestone in the company’s journey. The offering, led by Goldman Sachs Group Inc. and JPMorgan Chase & Co., not only provided Atmus with substantial capital but also facilitated a debt-for-equity exchange, highlighting the strategic partnership between the company and the two banks.
As Atmus prepares to trade on the New York Stock Exchange under the symbol ATMU, anticipation builds within the industry and among investors. The company’s IPO is the seventh-largest on a US exchange this year, reflecting the market’s renewed confidence and interest in promising ventures.
Atmus Filtration Technologies’ IPO not only signifies its own success but also contributes to the broader economic landscape. Following a sluggish start to the year, characterized by a slow first quarter, the IPO market experienced a resurgence. Atmus joins the ranks of Kenvue Inc., another notable spinoff, which achieved a remarkable $4.37 billion offering. The collective success of these IPOs underscores the industry’s resilience and ability to rebound from challenging periods.
With its products reaching customers in 150 countries, Atmus Filtration Technologies is poised to make a global impact. By providing essential filtration solutions to diverse industries, the company plays a vital role in ensuring the efficiency, reliability, and sustainability of various sectors. As Atmus continues to expand its market presence, its commitment to delivering high-performance filters remains unwavering.
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Conclusion
In conclusion, Atmus Filtration Technologies’ IPO has proven to be a resounding success, raising $275 million and valuing the company at $1.6 billion. As the seventh-largest listing on a US exchange this year, Atmus demonstrates the market’s renewed vitality. With its cutting-edge Fleetguard products, global reach, and strong backing from Cummins, the company is poised to shape the future of the filtration industry. Investors and industry enthusiasts eagerly await the commencement of trading on the New York Stock Exchange, eagerly anticipating Atmus’s continued growth and contributions to global industries.
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