Business

The stock fell 9% in the market debut on the New York Stock Exchange

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The New York Stock Exchange welcomes Dole executives and guests (NYSE: DOLE), on July 30, 2021, in celebration of its Initial Public Offering. To honor the occasion, Johan Linden, Chief Operating Officer, Seamus Mulvenna, CEO of Total Produce North America and Shane Power, Director of Corporate Finance, accompanied by Chris Taylor, Vice President, NYSE Listings and Services, call The Opening Bell®.

NYSE

Dole shares closed up more than 9% on Friday as the company made its return to public markets.

The stock opened at $ 15 per share, giving the company an implied market value of about $ 1.5 billion. However, the opening trade fell below its initial public offering price of $ 16, which was already on the lower end of Dole’s expected range. The stock is traded on the New York Stock Exchange under the symbol “DOLE”.

The IPO marks the completion of Dole’s merger with Total Produce, creating the world’s largest fresh produce company. The two companies announced the February agreement. The IPO has raised $ 400 million in gross revenue for the newly formed company. He intends to spend the money on the costs of the merger and pay off his debt.

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In 2020, the two companies reported combined net sales of $ 8.97 billion, generating net equity attributable to shares of $ 80.1 million. Dole Food accounted for just over half of overall revenue.

“The big advantage we have is a great diversity of sourcing capabilities,” said Role Byrne, CEO of Dole, who served in the same position at Total Produce prior to the merger.

Byrne said the company does not expect to see any material impact deriving from the ongoing drought in California. As of March 31, it owns more than 109,000 hectares of land worldwide.

Founded in 1851, Dole has been twice publicly exchanged. Billionaire David Murdock, now 98, took over the last private company in 2013 for $ 1.3 billion. Five years later, Total Produce bought a 45% stake in Dole for $ 300 million.

Despite a hot IPO market this year, Dole isn’t the only stock to see a cold reception from investors. Robinhood made its public market debut Thursday, closing more than 8%.


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