The nation’s largest less-than-truckload carrier, FedEx Freight, began trading Monday on the New York Stock Exchange under the ticker symbol FDXF.
The spinoff from parent FedEx Corp. allows the carrier to approach the market with a narrowed commercial focus
The transaction is also expected to unlock shareholder value at both companies. The transaction included a pro rata distribution of 80.1% of FedEx Freight’s (NYSE: FDXF) outstanding common stock to FedEx (NYSE: FDX) shareholders. Investors of record as of May 15 received one share of the new standalone company for every two shares of FedEx held.
FedEx will keep a 19.9% stake in FedEx Freight, but plans to dispose of the holdings within two years through debt repayment or dividend distributions to shareholders. FedEx Freight has replaced American Airlines (NASDAQ: AAL) in the Dow Jones Transportation Average (DJTA). The stock has also been included in the S&P 500.