Investing.com — Stocks of DSV A/S (OTC:) (CSE:) jumped on Friday after the Danish logistics giant raised its full-year guidance and previously released third-quarter results that were in line with expectations.
At 4:21 am (0821 GMT), DSV A/S was trading 6.2% higher at DKK 1,498.
The company now expects adjusted EBIT for 2024 to be in the range of DKK 16 to 17 billion, up from its previous forecast of DKK 15.5 to 17.0 billion.
“We do not expect a consensus revision,” Citi Research analysts said in a note.
The upward revision boosted investor confidence, especially as DSV’s third-quarter adjusted EBIT came in at around DKK 4.4 billion, in line with both analyst estimates and company expectations.
The improved outlook for the full year is seen as a good sign, especially as the company moves forward with its EUR 14.3 billion acquisition of DB Schenker.
DSV also announced plans to raise DKK 37.3 billion through the issuance of new shares. The offering, which will take place through a directed issue and private placement through an accelerated book-building process, is fully underwritten.
The net proceeds from the capital increase will be directed towards funding part of the DB Schenker deal. This deal is expected to increase DSV’s market position and operating margin, making the financing an important step in its growth strategy.
DSV receives DKK 21 billion in primary bonds from key stakeholders providing strong support for the company’s capital increase.
If the acquisition of DB Schenker goes through, it would be among the biggest deals in the transport industry, further strengthening DSV’s position as a world leader.
