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U.S. grocer Albertsons expects IPO to raise up to $1.3 billion

Published 06/18/2020, 04:40 PM
Updated 06/18/2020, 07:00 PM
© Reuters. Customers leave an Albertsons grocery store with their purchases in Burbank

© Reuters. Customers leave an Albertsons grocery store with their purchases in Burbank

(Reuters) - U.S. grocery retailer Albertsons Cos Inc said on Thursday its initial public offering would target to raise up to $1.32 billion.

The company said certain selling stockholders are offering 65.8 million shares at an indicative price range of $18 to $20 per share. The grocery retailer will not receive any proceeds from the IPO.

The upper end of the range would value the company at $11.61 billion, based on outstanding shares including certain convertible preferred stocks.

The IPO's underwriters have an option of buying an additional 9.9 million shares. Including this, the offering could fetch as much as $1.51 billion.

Albertsons, which operates namesake stores as well as U.S. supermarket chain Safeway and grocer Von, filed paperwork for an IPO in March, years after poor market conditions derailed its earlier attempt at going public.

Grocers, including Albertsons' 20 well-known banners, have benefited from panic buying and stockpiling amid the COVID-19 pandemic, as consumers rushed to supermarkets days before long lockdowns.

Albertsons is backed by Cerberus Capital Management LP, a buyout firm controlled by billionaire Stephen Feinberg. The listing would pave the road for Cerberus to exit the company.

Albertsons said on Thursday it would list its shares on the New York Stock Exchange under the symbol "ACI".

© Reuters. Customers leave an Albertsons grocery store with their purchases in Burbank

BofA Securities, Goldman Sachs (NYSE:GS), J.P. Morgan and Citigroup (NYSE:C) are the lead underwriters for the offering.

Latest comments

IPO?! Thought those dumps closed years ago
there gone in Florida
I wouldn't touch that stock with a ten foot pole. Albertson's was always and still is the worst run national grocery store chain
Whats your basis for coming up with that garbage? Cerberus took over Albertsons from Supervalu (thats when it was poorly ran). Subsequently they bought Safeway when they were struggling and Albertsons was doing well at that point. Cerberus did nothing but save two great grocers from going out of business. Now that Cerberus came in and did their awesome job they want to pull their money back out by selling it to the public.All of what I said is true and the garbage you talked about was hypothetical.
nop , no one will buy it , its too late already
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