Allison Transmission Increases Share Offering Size

Indianapolis-based Allison Transmission Holdings is getting bigger -- or at least share offering is.

On Tuesday evening, the world's largest manufacturer of fully automatic transmissions of medium and heavy-duty commercial vehicles, medium and heavy tactical U.S. defense vehicles, and hybrid gas electric transit buses announced that it is increasing the size of its secondary offering of shares by selling insider stockholders. Previously slated for 16.6 million shares in size, Allison's offering will now increase to 20.7 million shares, plus as many as 3.1 million more shares if the offering's underwriters exercise an overallotment option.

Shares will be offered at $22 apiece, making this secondary offering worth up upwards of $520 million before costs, fees, and expenses. However, Allison itself will not receive any of this cash. Rather, all proceeds will go to the insider shareholders selling shares in to the market.


Allison's two largest shareholders, owning 34.5% of the company each, are private equity firms Onex Corporation and the Carlyle Group .

The article Allison Transmission Increases Share Offering Size originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »

Add a Comment

*0 / 3000 Character Maximum