The price of the shares of fresh food giant Dole plc (DOLE) declined more than 9% on its recent stock market debut. Even though its merger with Total Produce has strengthened its brand portfolio and expanded its global footprint, given DOLE’s high debt burden and potential business risks, the question is, is the stock worth betting on now? Read more to find out.Dole plc (DOLE) in Dublin, Ireland, produces, distributes, and sells fresh produce, health foods, and consumer goods internationally. The company made its NYSE debut on July 30, 2021. The IPO marked the completion of its merger with Total Produce and the establishment of the largest fresh produce company in the world. However, the stock retreated more than 9% on its stock market debut and is down 0.5% over the past five days.
DOLE plans to use the $400 million gross proceeds from the IPO to repay debt and fund the merger costs.
As the company continues to focus on expanding its business by increasing its organic produce and taking advantage of Total Produce’s strong market presence in Europe, it is well-positioned to capitalize on the growing farm produce industry. However, COVID-19 related supply chain challenges, volatility in commodity food prices, and its substantial debt burden could limit its growth.