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Wednesday, 15 July 2020
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The News and Media Division of The Insight Partners
Friday, 26 Jun 2020 01:00 pm

Albertsons prices downsized IPO below target range: sourcesAlbertsons prices downsized IPO below target range: sources

U.S. supermarket operator Albertsons Companies Inc ABS.N on Thursday sold fewer shares than expected at a lower price than planned in its $800 million initial public offering, according to people familiar with the matter.

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The below-target pricing signaled an apparent softening in recent robust investor demand for new listings. On Wednesday, U.S. stocks fell sharply as investors worried about a resurgence of coronavirus cases in the United States.

Boise, Idaho-based Albertsons sold shares in its IPO at $16 apiece, below its $18-$20 per share target range, valuing the company at around $9.3 billion. Albertsons, majority-owned by private equity firm Cerberus Capital Management LP, cut the number of shares sold in the IPO to 50 million from 65.8 million.

Albertsons, which operates namesake stores as well as U.S. supermarket chain Safeway and grocer Von, did not immediately respond to a request for comment.

The company went public following months in which its fortunes have picked up in the coronavirus outbreak, as consumers stocked up on food while staying at home. Albertsons’ sales in March and most of April were up 34% from last year.

However, rival supermarket chain Kroger Co said last week the surge in demand for essential goods was fading as American households reconsider what they have on their shelves.

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Tags IPO Supermarket Albertsons Companies Inc Stock market Shares

Neha Pandey

Aware of her elements, Neha writes the best articles across industries including electronics & semiconductors, automotive & transportation and food & beverages. Being from the finance background she has the ability to understand the dynamics of every industry and analyze the news updates to form insightful articles. Neha is an energetic person interested in music, travel, and entertainment. Since past 5 years, she written extensively on sectors like technology, finance and healthcare.


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