Valvoline Inc (NYSE: VVV) made its debut on
the NYSE. The stock, which opened at $24.10, remained steady at about the $24 levels though it slipped to $23.82 for a brief
period.
The company came out with 30 million shares IPO with a price range of $20-$23. The company raised $660 million at a price of $22
per share. Another 4.5 million shares are ear-marked to cover over-allotment.
The gains recorded are lower than the other two prominent IPOs, Trade Desk Inc (NASDAQ:
TTD) and Novan Inc (NASDAQ: NOVN), recorded earlier this week. Both companies delivered over 60
percent gains on day one.
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Coming To Market By Week's End
As far as Valvoline is concerned, it's a spinoff unit from Ashland LLC (NYSE: ASH) engaged in producing automotive lubricant. In 2015, the unit generated $2 billion
revenue and recorded $196 million as profit. The company expects to reward its shareholders with a dividend following the IPO.
In all, 200 million shares are outstanding. Ashland retains the remaining 165.5 million shares of the company, or 83 percent
stake..
Interestingly, Wall Street Journal reported that only 63 companies have raised about $12.9 billion and the current year could
turn out to be the worst year as far as IPOs are concerned since the financial crisis.
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