The initial public offering of Albertsons, the supermarket operator, was priced at $16 a share, lower than expected, and fewer shares were sold than anticipated.
The pricing came in below the range of between $18 and $20 a share the company was seeking. Albertsons sold 50 million shares, below expectations of 65.8 million shares.
Albertsons raised only $800 million in the offering, below a possible $1.3 billion if the shares had been priced at the high end.
The offering values Albertsons at about $9.3 billion.
Albertsons won't receive any proceeds from the offering since the share sale came from existing shareholders. Cerberus Capital Management, Albertsons’s private-equity backer, will own 31.9% of Albertsons following the offering.
Albertsons operates stores under the Albertsons, Safeway and Vons names. The company also owns Plated, a meal-kit company.
Albertsons’ shares will begin trading Friday on the New York Stock Exchange on Friday under symbol “ACI."
Albertsons is going public after it failed to do so back in 2015. The company had filed for a listing to raise as much as $1.7 billion but withdrew the plan.
Bloomberg noted how IPOs in the U.S. have snapped back in June. A total of $11.8 billion was raised from 29 listings this month, including a $2.5 billion offering from Royalty Pharma (RPRX) and Warner Music Group's (WMG) - Get Report $1.9 billion deal.