Ashland Inc. announced the launch of Valvoline Inc.’s initial public offering (IPO) of 30 million shares of Valvoline’s common stock. Valvoline has applied for its common stock to be listed on the New York Stock Exchange under the symbol “VVV.”

After completion of the offering, Ashland will own 170 million shares of Valvoline’s common stock, representing 85% of the total outstanding shares of Valvoline’s common stock.

Valvoline Inc. said it plans to raise USD 605 million in the IPO. It intends to take on USD 980 million in debt and give the proceeds to Ashland. It will use some of the stock sale to pay down this new debt.

BofA Merrill Lynch, Citigroup and Morgan Stanley are acting as joint book-running managers for the offering and representatives of the underwriters. Deutsche Bank Securities, Goldman, Sachs & Co. and J.P. Morgan are also acting as joint book-running managers for the offering. Scotiabank is acting as senior co-manager for the offering and BTIG, Mizuho Securities, PNC Capital Markets LLC and SunTrust Robinson Humphrey are acting as co-managers for the offering.

Last September, Ashland’s board approved its plan to separate into two publicly traded companies, which the company said marked a final step in its decade-long transition. The Ashland business will focus on driving growth through higher-margin specialty chemicals.

In connection with the separation, Ashland Inc. will be seeking shareholder approval to reorganize Ashland Inc. under a new public holding company. This reorganization will enable Ashland to reincorporate in the U.S. state of Delaware and will help facilitate a tax-efficient separation.

Ashland Inc., based in Covington, Ky., U.S.A., is a global leader in providing specialty chemical solutions to customers in a wide range of consumer and industrial markets, including adhesives, architectural coatings, automotive, construction, energy, food and beverage, personal care and pharmaceutical. Currently, Ashland has three business units – Ashland Specialty Ingredients, Ashland Performance Materials and Valvoline.

Valvoline Inc. includes Ashland’s lubricant and quick lube business.