(Bloomberg) — Existing shareholders of Albertsons Cos., including Cerberus Capital Management, are seeking as much as $1.3 billion in its U.S. initial public offering, as grocery remains of the the few businesses to get a boost from the pandemic.
Backers of the Boise, Idaho-based supermarket chain are selling 65.8 million shares at $18 to $20 apiece, according to a Thursday filing with the U.S. Securities and Exchange Commission. Real estate investment firm Klaff Realty and Jay Schottenstein’s Schottenstein Stores Corp. are among sellers, the filing shows.
When many restaurants and other retailers were shuttered by the pandemic, supermarkets fared well. Unlike the S&P 500, which is down 3.6%, shares of Kroger Co. and Grocery Outlet Holding Corp. have risen 10% and 7.2% respectively this year.
The offering is expected to price on June 25, according to terms for the deal reviewed by Bloomberg News.
Albertsons has 2,252 stores and operates under 20 names, including Safeway, Vons and Jewel-Osco. The company made a profit of $466 million on revenue of $62 billion for the fiscal year ended Feb. 23, 2019, according to its filings.
In 2015, the company filed for an IPO to raise as much as $1.7 billion before withdrawing plans in 2018.
The new offering is being led by Bank of America Corp., Goldman Sachs Group Inc., JPMorgan Chase & Co. and Citigroup Inc. The company is seeking to list its shares on the New York Stock Exchange under the symbol ACI.