Dole Food Co. anticipates its upcoming public stock offering to raise up to US$565.7m.
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The fruit and vegetable producer, which is currently owned by David Murdock, will offer 37.7m shares at between $13 and $15 per share.
In August, when the group first announced the offering, Dole said that it hoped to raise around $500m.
In a regulatory filing on Friday (9 October), Dole said that the proceeds will be used to pay down debt, including $85m of debt personally guaranteed by Murdock.
Although the company has been disposing of assets to paydown debt this year, Dole revealed that meeting the provisions of its debt left it with “no ability to declare and pay dividends or other similar distributions”, as of early January.
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By GlobalDataMurdock, currently Dole’s chairman, will retain a 59% stake in the group following the offering. The company said he would continue to have “significant influence” over “management and affairs” for the “foreseeable future.
“Murdock… will be able to control virtually all matters requiring stockholder approval, including the election of directors and significant corporate transactions such as mergers or other sales of our company or assets,” Dole said in its filing with the US Securities and Exchange Commission.
