Allison Transmission Raises $600 Million Via I.P.O.

An I.P.O for a physical product is a refreshing change from the Tech 2.0 bubble we've been subjected to lately. Allison Transmission, formerly of General Motors, just issued their first I.P.O, raising $600 million for the company. Allison is now valued at $4.2 billion. Allison's current owners, which include the Carlyle Group and Onex (both private equity firms), should reap a fairly decent return from the company, having only invested $1.5 billion on their own (the rest of the money was borrowed). The two firms purchased Allison in 2007. Shares are going for about $23 each, though that may change if the underwriters of the deal decide to issue more. As of 1 PM Friday, the stock was up 3.03 percent to $24.11. from The Truth About Cars http://www.thetruthaboutcars.com

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