FedEx Freight’s journey as an independent company kicked off Monday after its spinoff was announced in December 2024.
The company in a statement said its stock began trading on the New York Stock Exchange Monday under the ticker “FDXF,” per the release. FedEx Freight common stock will also join leading global equity indices including the S&P 500 and the Dow Jones Transportation Average.
The board of directors of FedEx approved the spinoff May 13, which was another procedural step ahead of the June 1 spinoff.
“Today begins the next chapter for the new FedEx Freight,” FedEx Freight President and CEO John Smith said in the release. “We move forward as an independent company with a sharpened focus and disciplined strategy to build on our competitive advantages and accelerate profitable growth.”
The company now aims to use its network of more than 26,000 service center doors to deliver cost and service advantages to customers as well as capture growth opportunities in certain verticals.
“With our safety above all culture and a world-class team, FedEx Freight is well positioned to unlock our full potential and deliver long-term stockholder value,” Smith said.
In a promotional video last month, Smith said that the $9 billion startup aims to build a network equipped for the future.
"Rome wasn't built in a day,” Smith said, further noting that LTL acquisitions helped make the company what it is today. "We just kept growing."
FedEx Freight said the spin-off was achieved through the distribution by FedEx of 80.1% of the outstanding shares of FedEx Freight’s common stock on a pro rata basis to the holders of FedEx common stock. Every FedEx stockholder received one share of FedEx Freight common stock for every two shares of FedEx common stock held of record at the close of business on May 15.
While FedEx Freight operates independently from its former parent, FedEx retained 19.9% of the outstanding shares of FedEx Freight common stock, the release said. FedEx is expected to sell those shares within 24 months of the completion of the separation and use the proceeds to repay certain FedEx debt held by its creditors and through distributions to FedEx stockholders as dividends or in exchange for shares of FedEx stock.
