Grocery Retailer Albertsons Plans To Raise $1.3B In IPO

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 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.

JP Morgan Chase & Co. JPM, Citigroup Inc. C, Bank of America Corp. BAC subsidiary BofA Securities, G Goldman Sachs Group Inc. GS subsidiary Goldman Sachs & Co. LLC, are the lead underwriters for the public offering.

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

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 at the NYSE 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.

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

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