initial public offerings

Farm produce giant Dole slashes US IPO price range, targets $1.7-B valuation

Reuters
Farm produce giant Dole slashes US IPO price range, targets $1.7-B valuation

STOCK EXCHANGE. A Wall Street sign is pictured outside the New York Stock Exchange in New York, October 28, 2013.

Carlo Allegri/Reuters

Dole plans to price its shares between $16 and $17 apiece, compared with the previous range of $20 and $23 per share. But it increases the size of its offering.

Dole Plc on Wednesday, July 28, slashed the marketed price range for its initial public offering (IPO) in the United States, a move that reduced the fruit and vegetable grower’s targeted valuation by more than $400 million.

The company said it plans to price its shares between $16 and $17 apiece, compared with the previous range of $20 and $23 per share. It would be valued at $1.7 billion at the top end of the new range.

Dole, however, increased the size of its offering to about 30.3 million shares from 26 million shares.

The company was formed earlier this year through the merger of Ireland’s Total Produce PLC and Dole Food Company, with the IPO being one of the final pieces of the deal.

The merger also led to the departure of Dole’s 98-year-old billionaire owner David Murdock who had been at the helm since the 1980s.

The company plans to list on the New York Stock Exchange under the symbol DOLE.

Goldman Sachs, Deutsche Bank Securities, and Davy are the lead underwriters for the offering. – Rappler.com