DSV Soars After Increasing Outlook

Shares of DSV A/S experienced a significant increase on Friday following the Danish logistics company’s upward revision of its full-year guidance and the pre-release of third-quarter results that met expectations.

At 4:21 am (0821 GMT), DSV A/S saw a rise of 6.2%, trading at DKK 1,498.

The company now projects adjusted EBIT for 2024 to fall between DKK 16 billion and 17 billion, an improvement from its earlier prediction of DKK 15.5 billion to 17.0 billion.

Citi Research analysts commented that they do not foresee any changes in consensus expectations due to this upward revision, which has bolstered investor confidence. The company’s third-quarter adjusted EBIT was approximately DKK 4.4 billion, aligning well with both analyst expectations and its own forecasts.

This improved full-year outlook is viewed as a positive indicator, coinciding with DSV’s plans to move forward with its substantial EUR 14.3 billion acquisition of DB Schenker.

Additionally, DSV announced its intention to raise DKK 37.3 billion through the issuance of new shares. This offering will be conducted via a directed issue and private placement through an accelerated bookbuilding process, with full underwriting secured.

The proceeds from this capital raise are intended to partially fund the DB Schenker acquisition, which is expected to enhance DSV’s market position and operational scale, making this financing undertaking a vital component of its growth strategy.

Strong support for the capital raise has been demonstrated by DSV securing DKK 21 billion in cornerstone commitments from significant stakeholders.

If the acquisition of DB Schenker is completed, it will stand as one of the largest transactions in the logistics sector, further solidifying DSV’s position as a global leader.