Dime Industries gears up for its $1.2 billion IPO next week: Industry analyst
Posted On May 26, 2021
Dime Industry is gearing up for an expected $1 billion IPO later this week, after the New York Stock Exchange (NYSE) approved the company’s initial public offering (IPO).
The company said on Tuesday that it had raised a total of $3.9 billion in additional financing from its top investors, including hedge fund MFS Capital and investment firm Sequoia Capital.
Dime said the IPO will raise $1,100 for each of the 4,000 employees of the company, up from $950 earlier this month.
Dime said it is also increasing its dividend by 10 percent to 5 cents per share.
The IPO will occur on Thursday, June 30, 2018 at 12:01 p.m.
Dimes CEO Patrick O’Connor said the company is targeting a $3 billion valuation, which would represent about 10 percent of the value of its $2.4 billion in assets.
The company’s earnings per share are expected to be around $1 to $1-1.5 per share, depending on the valuation of the business.DIME’s IPO could have a major impact on the retail sector, which has been heavily hit by the downturn in consumer spending and falling stock prices.
Retailers have been suffering through a brutal decline in consumer confidence, especially in the wake of the election of President Donald Trump and the election-season political fallout.
Dimens has been criticized by some of the industry’s biggest players, including Wal-Mart Stores Inc., Target Corp., Walmart.com Inc., and Costco Wholesale Corp.
In a statement to CNBC, MFS said it will be a significant investment and Dimes is a very positive sign for the retail industry.MFS Capital, a hedge fund with $2 billion under management, will be the lead investor of Dimes.
The firm is led by Warren Buffett’s son, Peter Buffett, and has been a major player in the retail space since its founding in 2014.
Dimes said it plans to raise about $800 million in its IPO.
Dice said it expects to sell about 3 million shares of the new company’s stock by the end of its initial public offerings.