US fresh produce giant Dole Food Company has revealed that it expects to raise potentially as much as US$565.7m from its upcoming initial public offering of common stock, more than the US$500m originally anticipated when it announced the offering back in August of this year.
In a statement, Dole said it expected to raise between US$490.3m and US$565.7m by offering a total of 37.7m shares in the company on the New York Stock Exchange.
The group also revealed that owner and chairman David Murdock will still own 59 per cent of the company after the offering has taken place.
'Mr Murdock and his affiliates will, for the foreseeable future, have significant influence over our management and affairs, and 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 Securities and Exchange Commission.
Proceeds from the IPO will be used to pay off debts, personally guaranteed by Mr Murdock, amounting to some US$85m, leaving US$30m outstanding on that borrowing.
According to the statement, cross-default and acceleration provisions will be removed as a result of the IPO, which means the company's credit will not be jeopardised should Mr Murdock ever default on his debt.
In addition, Dole confirmed plans to transfer 1,600 acres (647.5ha) of unused production area in Honduras, estimated to be worth about US$12m, to affiliates of Mr Murdock.
The company has been selling off a number of assets to pay down its debt, the statement continued, including properties in Latin America for around US$68m.
Dole Food's reported net income during the quarter ended 20 June was US$20m, down from US$181m during the same period of 2008.
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