The stock opened at $ 15 per share, giving the company an implied market value of around $ 1.5 billion. However, the opening trade fell below its initial public offering price of $ 16, which was already in the lower end of Dole’s expected range. The stock trades 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 deal in February. The IPO raised $ 400 million in gross proceeds for the newly formed company. He intends to spend the money on the costs of the merger and pay off his debt.
In 2020, the two companies recorded combined net sales of $ 8.97 billion, generating net income attributable to shareholders of $ 80.1 million. Dole Food represented a little more than half of the overall turnover.
“The big advantage we have is a great diversity of sourcing capabilities,” said Rory Byrne, CEO of Dole, who held the same position for Total Produce before the merger.
Byrne said the company does not expect to see a material impact from the ongoing drought in California. As of March 31, she owned more than 109,000 acres of land worldwide.
Founded in 1851, Dole has already been listed on the stock exchange twice. Billionaire David Murdock, now 98, last privatized the 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 receiving a frosty reception from investors. Robinhood made its public market debut on Thursday, closing over 8%.