BOISE, ID – In an updated regulatory filing, Albertsons Cos. said that it now expects its initial public offering to raise up to $2 billion.
Albertsons intends to offer 65.3 million shares priced at $23 to $26 per share, valuing the company at approximately $12 billion. The Wall Street Journal reports that underwriters also have the option to buy up to an additional 9.8 million shares.
This is an update to Albertsons’ previous estimates, which said that the company would raise $1.84 billion through its proposed IPO.
Earnings from the IPO would be used to pay down debt, which, as we previously reported, were hovering around the $12 billion range.
Albertsons will trade on the New York Stock Exchange under the ticker symbol ABS.
As of June 20, 2015, the company operates 2,205 stores across 33 states under 18 banners.
Supermarket Chain Albertsons Targets the Public Market After Megamerger
Albertsons operates 30 distribution centers and 21 manufacturing facilities.
News of the retailer’s IPO comes at a time of increasing volatility in the stock markets, as well as Haggen’s recent $1 billion lawsuit against the company. Albertsons’ majority owner, Cerberus Capital Management, said that the IPO will help capitalize on the strong performance of rivals like Kroger, according to sources close to Reuters.
In its updated filing, Albertsons reported that during fiscal 2014, excluding Safeway, its identical store sales grew at 7.2 percent.
At Safeway, prior to Albertsons’ acquisition, the rate of identical store sales growth accelerated from 1.4 percent in fiscal 2013 to 3.0 percent in fiscal 2014.
Stay tuned to AndNowUKnow as we continue our coverage of Albertsons initial public offering.