Private equity-backed industrial parts maker Rexnord Corp. priced its initial public offering at $18 a share on Wednesday, at the low end of its expected range, Reuters reported. The Milwaukee-based company, owned by Apollo Global Management, sold 23.7 million shares, as planned. The offering raised $426 million.
(Reuters) – Private equity-backed industrial parts maker Rexnord Corp priced its initial public offering at $18 a share on Wednesday, at the low end of its expected range, an underwriter said.
The Milwaukee-based company, owned by Apollo Global Management, sold 23.7 million shares, as planned, the underwriter said. The offering had been priced in a range of $18 to $20 a share. The offering raised $426 million.
The IPO will reduce Apollo’s stake to 69.1 percent from 93.6 percent.
Last year, Rexnord generated net sales of $1.7 billion, up 13 percent from $1.5 billion in 2010. It posted a net loss of $51.3 million compared with a profit of $88.1 million in the year prior.
Rexnord first filed for a $400 million IPO in 2006 when it was owned by private equity firm the Carlyle Group. But the plan was scrapped after Apollo offered to buy the company for about $1.8 billion. It then filed for a $750 million IPO in 2008, but later withdrew the prospectus.
The IPO comes after the successful public offering earlier this month from Allison Transmission, another private equity-backed industrial company.
Private equity firms are expected to aggressively sell or take public some of their portfolio companies this year after being constrained by economic concerns in 2011.
Other large private equity-backed companies expected to pursue an IPO this year include Michaels Stores and Toys R Us.
Rexnord’s IPO underwriters include Bank of America Merrill Lynch, Goldman Sachs, Credit Suisse and Deutsche Bank.
Rexnord will begin trading on the New York Stock Exchange on Thursday with the ticker “RXN.”