US grocery store group, Albertsons Companies on Thursday sold fewer shares than expected at a lower price than its $800 million initial public offerings, in a sign of weak investor demand.
Albertsons IPO– Advertisement –
Second-largest U.S. grocer and supermarket giant Albertsons Cos. Inc. raised $800 million by sold 50 million shares at $16 price on Thursday in a downsized initial public (IPO) offering that priced below its $18-$20 target range, according to a regulatory filing.
This values the company at around $9.3 billion, excluding its $8.5 billion debt pile as of the end of February. The Boise, Idaho-based company also cut the number of shares sold in the IPO to 50 million from 65.8 million.
Albertsons’ Shares are expected to begin trading Friday on the New York Stock Exchange under the ticker ACI. The Albertsons IPO is led by joint bookrunners Bank of America, Goldman Sachs, JPMorgan and Citi.
About Albertsons Companies– Advertisement –
In 1939, Joe Albertson, a former Safeway district manager, took $5,000 he saved and $7,500 he borrowed from his wife’s Aunt Bertie, and partnered with L.S. Skaggs to open his first Albertsons store on 16th and State Streets in Boise, Idaho. Joe knew the keys of running a really great store, and it was all about working hard for the customers: give them the products they want, at a fair price, with lots of tender, loving care.
Just two years later, he had opened two other stores in neighboring communities and grew the fledgling company’s sales to over $1 million by the end of 1941.
Albertsons Companies, Inc. is an American grocery company founded and headquartered in Boise, Idaho. It is privately owned and operated by investors, including Cerberus Capital Management.
Second-largest supermarket chain in North America after Kroger Albertsons operates 2,252 supermarkets across the US and generated net sales of $62.5bn last year. The downsized IPO comes five years after the group scrapped plans to list because of market jitters.