DETROIT (Bloomberg) -- Delphi Automotive, the former parts unit of General Motors Co., on Wednesday raised $530 million in its initial public offering, pricing the shares at the low of its expected range.
The company sold 24 million shares for $22 each, according to data compiled by Bloomberg, after offering them for $22 to $24 apiece. Delphi will begin trading on the New York Stock Exchange on Thursday under the symbol DLPH.
The price range valued Delphi at a discount to other North American auto-parts makers as most of the proceeds went to the largest shareholder, Paulson & Co. The company had originally discussed a $1 billion IPO, with plans to use the funds for debt payments and working capital.
The hedge fund led by billionaire John Paulson intended to sell more than 80 percent of the shares in the IPO, according to Delphi's prospectus, and other existing shareholders offered the rest. The company isn't getting any proceeds from the IPO.
At the IPO price, Delphi has an enterprise value of about $8.5 billion, or 4.4 times earnings before interest, taxes, depreciation and amortization in the 12 months through September. That compares with about 5.4 for rival Visteon Corp. and an average of 5.8 times among North American auto-parts makers, based on data compiled by Bloomberg Industries.
Delphi, which emerged from bankruptcy in 2009 and is run by CEO Rodney O'Neal, returned to profitability last year after cutting costs and focusing on selling fuel- injection systems and other car parts in faster-growing countries such as China.
The company expects almost half of future growth to come from developing nations, according to its regulatory filing. In 2010, Daimler AG, Ford Motor Co., GM, Peugeot SA and Volkswagen AG made up almost half Delphi's $13.8 billion in sales, with GM accounting for the largest chunk.
Delphi now has about 101,000 workers, mostly in lower-cost countries, compared with 184,000 in 2005 when it filed for protection from creditors. Earnings in the three months ended Sept. 30 more than doubled to $266 million, while sales approached $4 billion.