An IPO of Dole is coming to the market soon. The global agricultural products giant on Monday announced the conditions for its IPO. Here’s what we know …

Dole IPO: Merger of Dole with Total Produce

When you see Dole’s name, you probably think of Dole Food Company, the American fresh produce company. But it is not that simple…

Company based in Dole and Ireland Total products announced plans to merge earlier this year to operate under the Dole brand. Both companies have been active in the fresh produce industry for over 150 years. In a report, Carl McCann, President of Total Produce, said the merger would create the world’s largest fresh produce company …

Our intention to list the new company on the US stock exchange marks an exciting next step for Dole plc. The combined company will become the largest global player with more than 170 years of fresh produce history in both companies, a highly diversified portfolio, resilient earnings and a strong balance sheet that positions us well for accelerated growth. We look forward to starting this next chapter and opening up new opportunities to our shareholders, dedicated employees, customers, suppliers and partners.

The company offers more than 300 products grown and purchased in more than 30 countries, produced and distributed in more than 80 countries. So how does Dole dominate the produce industry? We’ll take a look …

Dole dominating the vegetable industry

According to prospectus data, fruit and vegetable markets will reach $ 398 billion by 2025, up from $ 349 billion in 2020. That’s an annualized growth rate of 2.7% and Dole is growing with the industry. In its prospectus, the company described areas for expansion. Dole said …

For example, we are one of the world’s largest producers of fresh bananas and pineapples, one of the leaders in Value Added Salads… and Packaged Fresh Vegetables… in the United States, and we are more besides present in categories such as berries, avocados. , and organic products.

And the company should have no problem growing its business. After the merger, Dole plc estimates that it will be twice the size of its closest competitor with unmatched leadership and scale.

Highlighted in the deposit, the size of the combined companies will give them an untapped position in the product market…

While the fruit and vegetable industry is competitive and includes a large number of strong operators, we believe that our size creates differentiation and allows us to maximize operational efficiency and maintain a low cost positioning that creates differentiation. and is difficult to reproduce.

Dole IPO: finances

You can find detailed financial information in Dole’s IPO prospectus to better understand the company’s finances. If you’re looking for DOLE stocks, let’s take a look at the details.

Dole highlights some key information for investors. The company presented the consolidated financial information of the two companies in its file. Here are some key points …

Returned: Dole reported combined revenue of $ 8.97 billion for the fiscal year ended December 31, 2020.

Gross profit: Dole reported combined gross profit of $ 696 million for the fiscal year ended December 31, 2020.

Net revenue: At the end of 2020, the company’s combined net income stood at nearly $ 101 million.

Total assets and liabilities: Dole recorded combined total assets of $ 4.69 billion for the fiscal year ended December 31, 2020.

Total debt: Dole recognizes high debt on his file. The company recorded combined total debt of $ 1.2 billion for the fiscal year ended December 31, 2020. The company has indicated that it may “face risks associated with servicing our substantial debt” in its prospectus . But the company plans to use the proceeds from its IPO to help pay off debt.

Dole IPO: deposit details

Dole filed a registration statement on Form F-1 with the SEC (Securities and Exchange Commission) on July 2. The offer is made as part of the merger with Total Produce.

On Monday, the company set the terms for Dole’s IPO. The company plans to raise $ 559 million with 26 million shares priced between $ 20 and $ 23 per share. Dole will be listed on the New York Stock Exchange under the symbol DOLE. The company’s valuation could rise to $ 2.1 billion if the shares sell in the upper $ 23 range. The deposit is scheduled for the week of July 26, 2021.

Dole, as a well established and profitable company, will pay a quarterly dividend similar to what Total Produce has historically offered. “Total Produce has a long history of paying regular interim and final dividends to its shareholders each year, gradually increasing dividend payouts based on earnings growth,” the prospectus states.

The main underwriters of the transaction are Goldman Sachs, Deutsche Bank and Davy.

As always, be sure to do your research before investing. IPOs can be volatile for the first few months. But if you are interested in IPO investing, check out our recent top IPOs and our IPO calendar. It is updated daily to give you the latest news on upcoming and filed IPOs.

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About Aimée Bohn

Aimee Bohn is a graduate of the College of Business and Economics at Towson University. Her experience in marketing research helps her uncover valuable trends. Researching IPOs and other trends has been his main focus over the past year. When Aimee isn’t writing for Investment U, you can usually find her doing graphics or traveling with friends.