Grocery Retailer Albertsons Plans to Raise $1.3B in IPO

Albertsons on Thursday reported it envisioned to raise up to $1.3 billion in its initial general public offering.

IPO Pricing

The grocery retailer is hoping to promote 65.eight million shares priced concerning $18 and $twenty for every share. Underwriters for the IPO will have an option to invest in an added nine.87 million shares within just 30-days of the IPO.

Albertsons won’t be taking any internet proceeds from the offering, as all shares becoming marketed occur from the popular inventory of present stakeholders, together with billionaire Stephen Feinberg’s Cerberus Money Management.

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

The Idaho-based mostly corporation had submitted for the IPO with the United States Securities and Trade Commission in March.

[Editor’s be aware: Albertsons reported it is variety one particular or variety two in market share in most of the metropolitan marketplaces it serves. Profits previous 12 months rose to $62.five billion from $60.five billion in 2018, and the corporation attained $466 million, or eighty cents a share, in 2019 compared with $131 million, or 23 cents a share, in 2018. The coronavirus pandemic “has substantially increased” need for foodstuff-at-residence and on the internet gross sales, it reported, and the corporation has built up its curbside pickup and other methods.]

What’s Subsequent

Albertsons’ shares will checklist at the New York Inventory Trade under the ticker “ACI.” According to the Wall Avenue Journal, the Albertsons shares could begin trading on the New York Inventory Trade as shortly as upcoming week.

The corporation will be valued anyplace concerning $10.forty five billion to $11.sixty one billion based mostly on the reduced and higher ranges of its IPO price.

Albertsons’s general public offering will stick to a host of profitable IPOs lifted in the previous thirty day period, including those of Warner Music Team and ZoomInfo Technologies, as lockdowns associated to the novel coronavirus (COVID-19) pandemic eased.

This story originally appeared on Benzinga.

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