U.S. grocer Albertsons expects IPO to raise up to $1.51 billion

(Reuters) – U.S. grocery retailer Albertsons Cos Inc said on Thursday its initial public offering would target to raise up to $1.51 billion.

The company said certain selling stockholders are offering 75.7 million shares at a price range of $18 to $20 per share. The grocery retailer will not receive any proceeds from the IPO.

Albertsons, which operates namesake stores as well as U.S. supermarket chain Safeway and grocer Von, filed paperwork for an IPO in March, years after poor market conditions derailed its earlier attempt at going public.

Grocers, including Albertsons’ 20 well-known banners, have benefited from panic buying and stockpiling amid the COVID-19 pandemic, as consumers rushed to supermarkets days before long lockdowns.

Albertsons is backed by Cerberus Capital Management LP, a buyout firm controlled by billionaire Stephen Feinberg. The listing would pave the road for Cerberus to exit the company.

Albertsons said on Thursday 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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