Indianapolis attorneys say numerous local private firms are on the IPO sidelines, mulling whether to try to capitalize on the strengthening economy and improving investor appetite for new issues.
Allison Transmission Holdings Inc. shares rose 1.7 percent in their trading debut Thursday after the Indianapolis-based manufacturer raised more than sought in its initial public offering.
Shares of Allison Transmission Holdings Inc. are expected to begin trading Thursday, but the early reaction to the IPO from analysts is lukewarm. The locally based company’s private-equity owners are offering 21.7 million shares for $22 to $24 apiece, which could raise as much as $522 million.
When Allison Transmission Holdings Inc. a year ago filed plans to go public, it said some of the proceeds would go toward reducing billions of dollars in debt. But, in an updated filing with the SEC, the company reversed course, saying all of the more than $500 million that’s expected to be raised would go to its private-equity owners.
Indianapolis-based Allison Transmission Holdings Inc., the former parts unit of General Motors Co., is seeking to raise as much as $522 million for its private-equity owners in an initial public offering.
Net income of $103 million last year compares with a profit of $29.6 million in 2010 and a loss of $323.9 million in 2009, according to a document the transmission maker filed Feb. 17 with the Securities and Exchange Commission as part of its planned IPO.
The manufacturer was more profitable in the first nine months of this year than all of last year.
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 industry is waiting for the magic combination of high fuel prices and government-backed incentives to turn potential into profit.
Allison Transmission is not a household name like Google or General Motors, but it won’t lack an audience for its planned $750 million initial public offering.