NEW YORK (Bloomberg) -- Axalta Coating Systems Ltd., the former DuPont auto-paint unit now backed by Carlyle Group LP, rose in its first day of trading after raising $975 million in an initial public stock offering.
Axalta rose 6.4 percent to close the day at $20.75 in New York, after the shares in the IPO were priced at $19.50. The company didn’t sell any shares in the IPO, while affiliates of Carlyle sold 50 million, according to a statement Tuesday.
Carlyle, a Washington-based private-equity firm, more than tripled its money on paper. It bought Axalta from DuPont Co. in February 2013 for $4.9 billion, investing $1.35 billion of equity, according to the offering document. The IPO valued Carlyle’s existing shares at about $4.4 billion, or 3.3 times its cost.
Carlyle sold just over a fifth of its shares in the IPO, reducing its ownership stake to about 77 percent from 98 percent.
Citigroup Inc., Goldman Sachs Group Inc., Deutsche Bank AG and JPMorgan Chase & Co. managed the sale. Axalta is listed on the New York Stock Exchange under the ticker AXTA.