Allison Transmission Holdings Inc. shares fell, then rebounded in their trading debut early Thursday morning after the company raised more than sought in its initial public offering.
The shares dropped 0.7 percent, to $22.85 each in the first hour of trading, giving Allison a market value of about $4.1 billion. The Indianapolis-based company on Wednesday raised $600 million in the IPO, selling 26.1 million shares for $23 each after offering 21.7 million at $22 to $24.
Shares bounced back to $23.19 at midday, an increase of almost 1 percent.
The IPO price valued Allison’s stock at $4.2 billion, or almost triple the equity value when Carlyle Group LP and Onex Corp. bought the business from GM in 2007. It also makes Allison twice as expensive as Delphi Automotive Plc and Remy International Inc., two other former units of the automaker, according to data compiled by Bloomberg.Copyright © 2014, Los Angeles Times