Atmus Filtration Technologies (Tii:ATMU), a spinoff of Cummins (Tii:CMI) that makes products for on-highway commercial vehicles and off-highway agriculture, construction, mining and power-generation vehicles and equipment, mostly under the Fleetguard brand, issued its initial public offering on May 26.

The company is a well-established company in filtration and media solutions. For more than 65 years, it has combined its culture of innovation with a rich history of designing and manufacturing filtration products. With a presence in more than 150 countries on six continents, Atmus serves customers across truck, bus, agriculture, construction, mining, marine and power generation vehicle and equipment markets, along with comprehensive aftermarket support and solutions.

Atmus is headquartered in Nashville and employs about 4,250 people.

The company celebrated its May 26 IPO as its executives rang the Opening Bell at the New York Stock Exchange. “Today marks an important moment in the 65-year history of our business as we take our first step toward becoming Atmus,” said Chief Executive Officer Steph Disher. “By leveraging our global footprint, comprehensive offering of premium products, best-in-class technology and multi-channel path to market, Atmus will be well positioned to capitalize on the opportunities ahead and accelerate our growth trajectory. As we move forward, our talented team members across Atmus are committed to delivering on our purpose of ‘creating a better future by protecting what is important’ as we innovate and execute on our strategy to deliver value for our customers, partners and shareholders.”

The company was created by Cummins, a maker of diesel and natural-gas engines, in 1958. Upon completion of the IPO, Cummins holds approximately 83% of Atmus’ outstanding shares, or 80.5% if the underwriters' option to purchase additional shares is exercised in full. Earlier in May, Cummins reported first quarter revenues of $8.5 billion, an increase of 32 percent from the same quarter in 2022, a record for any first quarter in the company’s history. Sales in North America increased 39 percent and international revenues increased 24 percent due to the addition of Meritor and strong demand across all key global markets.

Atmus sold 14.1 million shares priced at $19.50 each to raise $275 million. With 83.3 million shares to be outstanding after the deal, the company’s valuation is about $1.6 billion. Atmus had pro forma net income of $34.9 million in the first quarter on sales of $418.6 million. About 16% of its 2022 sales went to original-equipment manufacturers (OEM), where its filters are used for new vehicles and equipment, and about 84% were aftermarket sales.

Goldman Sachs (Tii:GS) and JPMorgan Chase (Tii:JPM) were lead book-running managers on the deal, with 10 other banks acting as co-managers. Although the company is issuing primary shares, Atmus will not receive any of the IPO proceeds. All of the proceeds will go to debt-for-equity exchange parties, namely underwriters Goldman Sachs and JPMorgan, and will indirectly pay down parent Cummins’ debt, according to filing documents.

The IPO comes in a slow year for deals. There have been less than 50 IPOs this year to raise about $7.3 billion in proceeds, according to Renaissance Capital, a provider of IPO exchange-traded funds and institutional research. Still, IPOs are up 29.4% from the same period in 2022, when deal flow slowed to its lightest in decades.