Delphi raised $530 million in its initial public offering (IPO)

Article by Christian A., on November 21, 2011

Delphi Automotive raised $530 million last Wednesday in its initial public offering, with its shares priced lower than its anticipated range. Bloomberg stated that Delphi Automotive, a former parts unit of General Motors Co., was able to sell 24 million shares for $22 each after they were offered for $22 to $24 each.

This Thursday, Delphi will start trading on the New York Stock Exchange under the symbol DLPH. With this price range, Delphi is valued at a discount compared to other auto parts makers in North America since majority of the proceeds went to Paulson & Co., the largest shareholder.

Delphi had initially cited a $1 billion IPO, with plans for these funds to be used in debt payments and working capital. The hedge fund led by billionaire John Paulson meant to sell over 80% of the shares in the IPO, as stated in Delphi's prospectus.

The rest were offered by other existing shareholders. Delphi is not receiving any proceeds from the IPO. In the 12 months through September, Delphi has an enterprise value of around $8.5 billion, or 4.4 times earnings before interest, taxes, depreciation and amortization, at the IPO price.

In comparison, rival Visteon Corp. has it at around 5.4 times while North American auto-parts makers have it at an 5.8 times, according to data compiled by Bloomberg Industries.

Delphi had emerged from bankruptcy in 2009. It is headed by CEO Rodney O'Neal. It became profitable once again last year after it was able to reduce costs and concentrate on selling fuel- injection systems and other car parts in countries experiencing faster growth, one of which is China. [source: WashingtonPost]

Topics: delphi, ipo

If you liked the article, share on:

Comments

Recommended

Hyundai Motor Group – including both Hyundai Motor and Kia Motors – has disclosed a wide-ranging plan to introduce 31 environment-friendly models in a new development roadmap that aims to...
by - August 22, 2017
Over a decade ago, Pagani took the Zonda to the Geneva Motor Show. The Zonda hypercar was then set to retire in 2013 together with the track-focused Revolucion. But here...
by - August 22, 2017
The newest Porsche Cayenne is scheduled be unwrapped by the end of the month after completing endurance tests worth 2.7 million miles. Since we are just a few weeks away...
by - August 22, 2017
This is the time of the year when automakers give us teasers and previews of their upcoming models. Now, it seems like BMW is ready to unveil the M5 (F90)...
by - August 22, 2017
It is quite common to revive classic cars if you have a lot of extra money. Models like the Jaguar XKSS and Aston Martin’s DB4 GT have been upgraded to...
by - August 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries