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.
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.
ASH stock was up 3% as of Monday afternoon.
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