Delphi raises $530 million after IPO image

Auto-parts maker Delphi Automotive raised $530 million in its initial public offering, as the company priced the shares at the lower end of the expected range.

According to Bloomberg, the former parts unit of General Motors sold 24 million shares for $22 each on Wednesday, after offering them for $22 to $24 apiece. Delphi will begin trading of the New York Stock Exchange (NYSE) on Thursday under the symbol DLPH. Most of the proceeds from the IPO went to Delphi’s largest shareholder, Paulson & Co. The company had originally wanted a $1 billion IPO, in order to use the funds to pay debts and to raise working capital.

The hedge fund led by billionaire John Paulson wanted to sell more than 80 percent of the shares in the IPO, with the rest coming from other existing shareholders. Delphi Automotive won’t get any proceeds from the IPO. According to the IPO price, the enterprise value of Delphi is around $8.5 billion, 4.4 times its earnings before interest, taxes, depreciation and amortization in the 12 months through September. Rival Visteon Corporation has a value of 5.4 its earnings.

Delphi became profitable again last year after cutting costs and focusing on selling fuel-injection systems and other car parts in faster-growing markets like China. The company emerged from bankruptcy in 2009.