Allison Transmission Holdings Inc.'s shares rose the day of their debut after falling earlier in the day.


Allison raised $600 million in its IPO, pricing its 26.1 million shares of common stock at $23 per share versus estimates for 21.7 million at a range of $22 to$24 per share.

In the first day of trading as a public company, shares rose to $23.40 each, giving Allison a market value of about $4.2 billion, reports The Wall Street Journal.


The Indianapolis Business Journal reports that Allison's $4.2 billion-valued stock is almost triple the equity when Carlyle Group LP and Onex Corp. bought the business from General Motors in 2007.

The selling stockholders in the offering granted the underwriters an option to purchase up to 3.9 million additional shares at the initial offering price, less the underwriting discounts and commissions, to cover overallotments, if any.

Allison Transmission Holdings will not receive any proceeds from the sale of shares by the selling stockholders in this offering, including from any exercise by the underwriters of their overallotment option.