Rexnord moves closer towards New York listing

REXNORD Corporation, which manufactures power transmission and water management products, announced terms for an IPO on the New York Stock Exchange yesterday.

The Milwaukee-based company plans to raise $450m (£283m) by offering 23.7m shares at a price range of $18 to $20.

At the midpoint of the proposed range, Rexnord would command a market value of $1.87bn.

Rexnord, which was founded in 1891 and booked $1.9bn in sales in 2011, plans to list under the symbol RXN.

This is Rexnord’s second attempt to go public. The company first filed in July 2008, before withdrawing in October 2009.

Private equity firm Apollo Management will own 69 per cent of shares after the offering.

BofA Merrill Lynch, Goldman Sachs and Credit Suisse are the joint bookrunners on the deal.

Yesterday’s announcement is another sign that the IPO market in the US is pretty healthy. This is in contrast to London where companies, especially home-grown ones, have failed to find support from the long-only institutions after a spate of disappointing flotations.