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Grocery Retailer Albertsons Plans to Raise $1.3B in IPO


Albertsons on Thursday said it expected to raise up to $1.3 billion in its initial public offering.

IPO Pricing

The grocery retailer is hoping to sell 65.8 million shares priced between $18 and $20 per share. Underwriters for the IPO will have an option to purchase an additional 9.87 million shares within 30-days of the IPO.

Albertsons won’t be taking any net proceeds from the offering, as all shares being sold come from the common stock of existing stakeholders, including billionaire Stephen Feinberg’s Cerberus Capital Management.

JPMorgan Chase, Citigroup, Bank of America’s BofA Securities, and Goldman Sachs are the lead underwriters for the offering.

The Idaho-based company had filed for the IPO with the United States Securities and Exchange Commission in March.

[Editor’s note: Albertsons said it is number one or number two in market share in most of the metropolitan markets it serves. Sales last year rose to $62.5 billion from $60.5 billion in 2018, and the company earned $466 million, or 80 cents a share, in 2019 compared with $131 million, or 23 cents a share, in 2018. The coronavirus pandemic “has significantly increased” demand for food-at-home and online sales, it said, and the company has built up its curbside pickup and other systems.]

What’s Next

Albertsons’ shares will list at the New York Stock Exchange under the ticker “ACI.” According to the Wall Street Journal, the Albertsons shares could begin trading on the New York Stock Exchange as soon as next week.

The company will be valued anywhere between $10.45 billion to $11.61 billion based on the lower and upper ranges of its IPO price.

Albertsons’s public offering will follow a host of successful IPOs raised in the last month, including those of Warner Music Group and ZoomInfo Technologies, as lockdowns related to the novel coronavirus (COVID-19) pandemic eased.

This story originally appeared on Benzinga.

© 2020 Benzinga does not provide investment advice. All rights reserved.

Albertsons, Benzinga, grocery, IPO, NYSE


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