12 Things to Know About the Valvoline IPO

Ashland Inc (NYSE:ASH) announced in a Form 8-K filing with the U.S. Securities and Exchange Commission on Monday that it has launched its Valvoline IPO.

Valvoline, Ashland, IPO, ASH Stock

Here are a few things to know about the Valvoline IPO that will have it separating from Ashland.

  • The company will be offering 30 million shares of its common stock in the IPO.
  • Underwriters will have the option to purchase an additional 4.5 million shares.
  • Ashland will own 170 million Valvoline shares after the IPO is finished.
  • This will have it owning 85% of the company’s stock, or 83% if the underwriters purchase the additional 4.5 million shares.
  • It has applied to have its common stock listed on the New York Stock Exchange under the “VVV” ticker.
  • The company is expecting the stock to be priced between $20 per share and $23 per share.
  • Valvoline is expecting to raise about $605 million from its IPO.
  • The lubcricant company plans to acquire $980 million in debt after the IPO and transfer it to Ashland.
  • Ashland will use the money obtained from Valvoline to pay off some of its own debts.
  • The IPO could have the company raising as much as $793 million, before fees, if underwriters acquires the extra 4.5 million shares being offered to them.
  • Ashland is planning to spin off its stake in the company to its shareholders after a certain amount of time.
  • About 5% of the shares being sold in the IPO are being reserved for Valvoline employees and franchisees of the company’s Instant Oil Change stores.

Follow these links to learn more about the Valvoline IPO.

ASH stock was up 3% as of Monday afternoon.

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