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Is Now the Time to Buy Albertsons Despite Competitors Like Walmart and Costco?

Here's what to keep an eye on as Albertsons goes public.

Albertsons IPO'd on Friday. Shares will begin trading Friday on the New York Stock Exchange on Friday under the symbol “ACI." 

The stock 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. And the offering values Albertsons around $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.

Originally, Albertsons had planned to IPO back in 2015, but failed to do so. Back then, the listing plan was to raise as much as $1.7 billion 

So, what does this IPO mean for the company now?

Jeff Marks, senior portfolio analyst with Action Alerts PLUS, joined TheStreet to talk about the business. He noted that he likes the new team and that grocery stores are essential right now.

You can follow Katherine Ross on Twitter @byKatherineRoss.

Read more from Katherine Ross here.

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