Tenneco Picks Four Banks for $14B IPO as EBITDA Tops $2B
Apollo-owned Tenneco has hired Bank of America, Barclays, Citi and JPMorgan Chase to lead a potential IPO valuing the automotive supplier at $14B, up from the $7B enterprise value in 2022. Tenneco is projected to generate over $2B in EBITDA this year, nearly double its pre-acquisition level.
1. IPO Process and Bank Selection
Apollo-owned Tenneco has selected Bank of America, Barclays, Citigroup and JPMorgan Chase as lead underwriters for its planned IPO, with final structure still undecided and options to list the entire business or only parts of the company.
2. Valuation and Financial Performance
Based on comparable company valuations, Tenneco's full enterprise could reach approximately $14B, up from the $7B implied valuation at its 2022 acquisition, as the company is on track to post more than $2B in EBITDA this year.
3. Market and Policy Drivers
Recent regulatory changes, including the removal of electric vehicle tax credits and relaxed emissions standards, are expected to support gasoline vehicle demand and parts suppliers, while broader private equity-backed companies prepare for similar public listings.