Dole IPO Drops Over 9% During First Day Of Trading

Shares of the world’s large produce company slid by over 9% on Friday after debuting on the New York Stock Exchange. Dole (NYSE: DOLE) opened for trading at $15, at an implied market value of approximately $1.5 billion, which was below the initial public offering of $16. The stock closed at…

$14.50 on Friday, giving the company a market valuation of $1.35 billion. “The timing was what it was, the valuation is what it is,” said Chief Executive Officer Rory Byrne in an interview.

This was the company’s third effort to go public, after an initial offer of 26 million shares for $20 to $23 on Tuesday, then a second share sale of 30.3 million shares for $16 to $17 dollars on Thursday. Friday’s IPO ended up selling only 25 million shares and raising $400 million in gross proceeds.

Why it’s important: The IPO comes after the successful merger of Dole with Total Produce, a deal that was announced in February. According to its filings, the combined company generated $58 million in net income with $2.3 billion in revenue in the first quarter of this year. Byrne says the…

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