Delphi Automotive filed to raise up to $100 million in an initial public offering, the US auto supplier said in a securities filing on Wednesday, less than two years after emerging from bankruptcy. The proceeds of the offering will be used primarily to fund Delphi's operations, acquire capital equipment and repay debt. The amount is preliminary and could change.
People familiar with the matter have said the IPO could range from $1 billion to $1.5 billion. Members of Delphi's board of directors are eligible to receive a $275,000 cash bonus if Delphi's value exceeds $6 billion after an IPO, according to the filing. However, Chief Executive Rodney O'Neal, who sits on the board, is not eligible for the bonus.
If the company's value does not exceed this amount, the directors will not receive an award. Delphi said the award was designed to "incentives engagement and performance which results in a successful initial public offering." "Assuming that the offering is priced at the midpoint of the range set forth on the cover of this prospectus, we expect the implied company value to exceed $6 billion," Delphi said in its filing with the US Securities and Exchange Commission.
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