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Last Update: 17-Nov-11 09:50 ET
Delphi Prices IPO At $22, At Low End Of Range
Delphi's (DLPH $21.68 -0.32) 24.08 million share IPO priced at $22, which is at the low end of the $22 to $24 expected price range, to raise total gross proceeds of $529.8 mln.
The deal was led by Goldman Sachs and JP Morgan... DLPH is a one of the largest global vehicle components manufacturers, focusing on the production of electrical and electronics parts, powertrain, safety, and thermal technology products. Delphi was also a former division of General Motors (GM), which held a majority ownership stake in the company, before it filed for bankruptcy.
Earlier this year, the co bought back its stake from GM, as well as from Pension Benefit Company Its customers include the 25 largest automotive OEMs in the world, and it operates 110 manufacturing facilities and 15 primary technical centers. The company has four primary product segments: Electrical/Electronic Architecture (40% of revenue); Powertrain Systems (30%); Electronics & Safety (19%); and Thermal Systems (11%).
Looking at its financials, for the first nine months of 2011, revs were up 19% y/y to $12.1 bln and it had an operating income of $1.2 bln. This was a 45% increase from the year-ago period, and is vastly improved from the large losses it recorded in 2007-2009... DLPH's turnaround is a function of cutting its product lines to 33 from 119, decreasing its global headcount by 23% (with ~90% of its workforce now in low-cost countries), closing 70 sites around the world, and cutting ties with the UAW.
The deal was led by Goldman Sachs and JP Morgan... DLPH is a one of the largest global vehicle components manufacturers, focusing on the production of electrical and electronics parts, powertrain, safety, and thermal technology products. Delphi was also a former division of General Motors (GM), which held a majority ownership stake in the company, before it filed for bankruptcy.
Earlier this year, the co bought back its stake from GM, as well as from Pension Benefit Company Its customers include the 25 largest automotive OEMs in the world, and it operates 110 manufacturing facilities and 15 primary technical centers. The company has four primary product segments: Electrical/Electronic Architecture (40% of revenue); Powertrain Systems (30%); Electronics & Safety (19%); and Thermal Systems (11%).
Looking at its financials, for the first nine months of 2011, revs were up 19% y/y to $12.1 bln and it had an operating income of $1.2 bln. This was a 45% increase from the year-ago period, and is vastly improved from the large losses it recorded in 2007-2009... DLPH's turnaround is a function of cutting its product lines to 33 from 119, decreasing its global headcount by 23% (with ~90% of its workforce now in low-cost countries), closing 70 sites around the world, and cutting ties with the UAW.
