Indianapolis-based Allison Transmission is planning to raise as much as $1 billion in an initial public offering, Reuters news service reported.
Allison is the world’s largest maker of automatic transmissions for commercial vehicles.
A former division of General Motors Corp., Allison employs 2,700 people. Most of the work force is at the headquarters and production facilities in Speedway.
GM sold Allison in 2007 to two private-equity firms, Toronto-based Onex and Washington, D.C.-based Carlyle Group, for $5.6 billion.
Reuters said it based its report on four sources familiar with the situation. Two said the IPO was expected to raise between $500 million and $1 billion.
The report said the IPO might occur in the third quarter. The sources cautioned plans were preliminary and could change.
Allison spokeswoman Melissa Sauer declined to comment Friday afternoon.
Reuters said Allison has hired a team of Wall Street heavyweights to underwrite the offering. The group includes Bank of America, Merrill Lynch, Citigroup Inc., Credit Suisse, Morgan Stanley and JPMorgan Chase & Co.