Xylem debuts with $4.4bn market cap

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ITT’s water spin-off will start regular trading on NYSE on 1st November.

Shares in Xylem Inc., the water technology and services business spun out from ITT Corporation, closed their first day’s trading as a “when issued” stock on NYSE at $24.25, valuing the company’s equity at around $4 4 billion.

 
In a key test of investor appetite ahead of the spin-off, Xylem priced its inaugural $1.2 billion bond issue in late September. The triple-B rated deal was split equally across 5- and 10-year tranches, and performed encouragingly in the after-market.
 
The debut of a new liquid water pureplay on the publicly traded market will be manna from heaven for water funds, which have seen their investment opportunities shrink rapidly due to rampant activity in the M&A market.
 
Xylem shares will transfer to full trading with effect from 1st Novembe