U.S. grocery retailer Albertsons Cos Inc’s IPO aims to raise $1.3 billion

Albertsons Cos Inc, a U.S. grocery retailer said, it is aiming to raise up to $1.32 billion through its initial public offering (IPO).

Certain selling stockholders are offering 65.8 million shares at an indicative price range of $18 to $20 per share, said the retailer while adding it will not receive any proceeds from the IPO.

If the grocer was to be valued at the upper end of its offering, it would value the company at $11.61 billion, based on outstanding shares including certain convertible preferred stocks.

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

Albertsons has its own stores in the U.S. as well as U.S. supermarket chain Safeway.

Midst the pandemic, grocers, including Albertsons, have benefited significantly from stockpiling and panic buying with consumers rushing to supermarkets days before lockdowns.

Albertsons is backed by Cerberus Capital Management LP, a buyout firm controlled by billionaire Stephen Feinberg.

The IPO paves the road for Cerberus to exit the company.

In a statement Albertsons said, it would list its shares on the New York Stock Exchange under the symbol “ACI”.

BofA Securities, Goldman Sachs, J.P. Morgan and Citigroup are the lead underwriters for the offering.

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