IBJNews

Allison Transmission still chasing initial public offering

Back to TopCommentsE-mailPrintBookmark and Share

Allison Transmission Inc. hasn't given up on going public, despite nearly eight months passing since its initial filing with the Securities and Exchange Commission.

The Indianapolis-based manufacturer updated its prospectus on Nov. 4 to reflect financial results through Sept. 30 that show the company made more profit in the first nine months of this year than in all of 2010.

Allison still hasn't said how many shares it will issue at what price, but as long as it keeps its financial information current, the Securities and Exchange Commission will allow the company to complete its IPO, said David Menlow of IPO Financial in Millburn, N.J.

In practice, the longer it takes to set terms, the more likely the IPO will never launch, he said. "That's the biggest problem."

Allison spokeswoman Melissa Sauer said the company would not comment on when it might complete the IPO.

Allison announced its intent to go public in March, potentially raising $750 million.

Another local company, Angie's List Inc., by contrast, announced its intent to go public in August and on Nov. 2 priced the shares at $11 to $13.

Menlow thinks Delphi Automotive Plc's pending IPO could give Allison a lift. Delphi, based near Detroit, said on Nov. 7 that its shares would likely go for $22 to $24, and a person familiar with the offering told Bloomberg News that they could start trading as early as Nov. 17.

"If Delphi is received well in the marketplace, the chances of Allison moving forward improve," Menlow said. Both companies are former units of General Motors, and investors tend to lump them in with the whole automotive industry," he said.

Allison, which makes transmissions for heavy-duty trucks and buses, reported a profit of $58.5 million through Sept. 30, compared with $5.5 million in the same nine-month period last year. It earned $29.6 million in all of 2010.

Sales have increased 12 percent, from $1.47 billion to $1.6 billion, in the nine-month period, Allison reported. Another factor behind the surge in profitability is lower interest expense.

Allison reduced its total debt this year from $3.7 billion to $3.46 billion.

ADVERTISEMENT

  • A Public Allisons
    Will these union descendents of GM leave the shareholders hanging too?

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Of what value is selling alcoholic beverages to State Fair patrons when there are many families with children attending. Is this the message we want to give children attending and participating in the Fair, another venue with alooholic consumption onsite. Is this to promote beer and wine production in the state which are great for the breweries and wineries, but where does this end up 10-15 years from now, lots more drinkers for the alcoholic contents. If these drinks are so important, why not remove the alcohol content and the flavor and drink itself similar to soft drinks would be the novelty, not the alcoholic content and its affects on the drinker. There is no social or material benefit from drinking alcoholic beverages, mostly people want to get slightly or highly drunk.

  2. I did;nt know anyone in Indiana could count- WHY did they NOT SAY just HOW this would be enforced? Because it WON;T! NOW- with that said- BIG BROTHER is ALIVE in this Article-why take any comment if it won't appease YOU PEOPLE- that's NOT American- with EVERYTHING you indicated is NOT said-I can see WHY it say's o Comments- YOU are COMMIES- BIG BROTHER and most likely- voted for Obama!

  3. In Europe there are schools for hairdressing but you don't get a license afterwards but you are required to assist in turkey and Italy its 7 years in japan it's 10 years England 2 so these people who assist know how to do hair their not just anybody and if your an owner and you hire someone with no experience then ur an idiot I've known stylist from different countries with no license but they are professional clean and safe they have no license but they have experience a license doesn't mean anything look at all the bad hairdressers in the world that have fried peoples hair okay but they have a license doesn't make them a professional at their job I think they should get rid of it because stateboard robs stylist and owners and they fine you for the dumbest f***ing things oh ur license isn't displayed 100$ oh ur wearing open toe shoes fine, oh there's ONE HAIR IN UR BRUSH that's a fine it's like really? So I think they need to go or ease up on their regulations because their too strict

  4. Exciting times in Carmel.

  5. Twenty years ago when we moved to Indy I was a stay at home mom and knew not very many people.WIBC was my family and friends for the most part. It was informative, civil, and humerous with Dave the KING. Terri, Jeff, Stever, Big Joe, Matt, Pat and Crumie. I loved them all, and they seemed to love each other. I didn't mind Greg Garrison, but I was not a Rush fan. NOW I can't stand Chicks and all their giggly opinions. Tony Katz is to abrasive that early in the morning(or really any time). I will tune in on Saturday morning for the usual fun and priceless information from Pat and Crumie, mornings it will be 90.1

ADVERTISEMENT