DowDuPont (DWDP) said Friday its board approved the separation of DowDuPont's materials science division, which will become the new Dow, an independent, publicly traded company, on April 1.
Dow will list on the New York Stock Exchange on or about March 20 under the ticker symbol "DOW WI" on a when-issued basis and then begin regular trading April 2 under the ticker symbol "DOW."
DowDuPont shareholders will receive one share of Dow stock for every three DowDuPont shares owned on April 1, the distribution date. The company declared a pro rata dividend for the second quarter of $325 million, to be paid May 28, to shareholders of record as of April 26. DowDuPont also confirmed plans to buy back $3 billion of stock after separation.
The board also declared a pro rata dividend for the second quarter of $525 million, to be paid on June 14 to Dow stockholders of record as of the close of business on May 31.
DowDuPont was formed by the $130 billion merger of Dow Chemical and DuPont in September 2017. The Midland, Michigan-based chemical company is in the process of splitting itself up into three companies - Dow, DuPont and Corteva Agriscience. Corteva, the agriculture unit, is set to separate from DuPont on June 1.
"The new Dow is a more focused, disciplined and market-oriented company," Jim Fitterling, chief operating officer of the Materials Science division and chief executive officer elect of Dow, said in a statement.
Shares of DowDuPont were off slightly to $54.02 in premarket trading.