Bottom Line on the Dole Food IPO
For the most part, it’s tough to gauge the reception of the offering. Again, the pricing has yet to be set.
But it is important to keep in mind that the IPO market has continued to be fairly light this year, except for a few high-profile deals like Snap Inc (NYSE:SNAP).
So a brand like Dole Food should be able to stand out. What’s more, the handful of food-related IPOs have done fairly well. For example, US Foods Holding Corp (NYSE:USFD) has gained about 20% since coming public in late May 2016.
So all in all, it seems like a good bet that the Dole Food IPO should also get a warm reception from investors, especially considering the company’s strong portfolio, deep infrastructure, trusted brand and the substantial improvement in cash flows.
Tom Taulli runs the InvestorPlace blog IPO Playbook as well as OptionExercise.com, which provides interactive tools & services for employee stock options of pre/post IPO companies. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.