DuPont Sets Qnity Spinoff For November 1, Will Receive $4.1 Billion Dividend

By |
4 Comments
As we have discussed previously, DuPont(DD) has had more spins than a washing machine. Several weeks ago, DuPont set the record date for its Qnity spinoff, but final Board approval and some important details were lacking. Now, the Board has approved the Qnity spinoff and remaining details are out.

As we reported earlier, the record date for the Qnity spinoff will be October 22, and the distribution date on November 1. We now know the distribution ratio as well- DuPont shareholders will receive one share of Qnity stock for every two shares of DuPont stock they own.

Qnity stock will be listed on the NYSE, with “when-issued” trading expected to begin on October 27, 2025, under the symbol “Q WI”, with such trading ending at the close of business on October 31, 2025. Following the spinoff Qnity stock is expected to begin “regular way” trading on the NYSE on Monday, November 3, 2025 under the symbol “Q”.

Also beginning on October 27, 2025 through October 31, 2025, there will be two markets in DuPont stock: a “regular-way” market under the symbol “DD” in which DuPont shares will trade with the right to receive shares of Qnity stock in the distribution, and an “ex-distribution market” under the symbol “DD WI” in which DuPont shares will trade without the right to receive shares of Qnity common stock in the distribution.

It was further announced that Qnity will be paying a dividend of nearly $4.2 billion to DuPont at the time of the spinoff funded by debt that Qnity previously took out in the months leading up to this spinoff.

Deutsche Bank reiterated its Buy rating on DuPont stock with a price target of $90, well above current trading level around $78.

The bank believes the November 1 separation of DuPont’s Electronics business (Qnity) will unlock substantial value, noting that DuPont shares currently trade at a 38% discount to its estimated sum-of-the-parts value of $126. This potential upside appears significant, particularly considering the stock’s impressive 31.4% gain over the past six months, as tracked by InvestingPro.

Deutsche Bank points out that DuPont’s Electronics business could command a higher valuation after separation, as its closest peer Entegris trades at 19.4x 2025 estimated EBITDA, while DuPont trades at just 11.4x.

A re-rating for Qnity plus a cleaned up balanced sheet at DuPont could lead to significant returns for investors.

Disclosure: The author holds no position in any stock mentioned