You can now buy shares in Boise-based Albertsons on the New York Stock Exchange
Shares of Boise-based Albertsons Cos. stock debuted Friday on the New York Stock Exchange.
The stock opened at $15.50 a share and closed a penny higher. It declined to $15.45 in after-hours trading.
On Thursday, existing shareholders sold fewer shares than they expected and at a lower price, raising questions about how successful the initial public offering will be.
The Wall Street Journal, citing “people familiar with the matter,” said 50 million shares were sold at $16 per share Thursday, earning $800 million for the investors who owned the shares.
Albertsons had originally hoped to sell 65.8 million shares at between $18 and $20 a share, according to a filing with the Securities and Exchange Commission.
The Journal reported that companies have raised nearly $12 billion this month in the IPO market in the United States. Several companies priced shares above expectations following strong investor interest. Albertsons didn’t see the same interest.
Shares of newly listed companies have risen an average 25% on their first day of trading since the first of April. Since the first of the year, first-day trading has increased companies’ share prices by an average of 20%.
Albertsons, the nation’s second-largest grocery chain behind Kroger, won’t receive any money from stock purchases. Proceeds will instead go to Cerberus Capital Management and other investors in the company. The New York private equity firm has controlled Albertsons since 2006.
After the stock sale, Cerberus will own 31.9% of stock, according to the filing. The Cerberus shares are controlled by the company’s co-founder and co-CEO, Stephen A. Feinberg.
Klaff Realty, Lubert-Adler Management and Schottenstein Stores Corp. will each own about 11.7%, and Kimco Realty Corp. will own about 8%.
The company’s shares is listed on the New York Stock Exchange under the symbol “ACI” .
This story was originally published June 25, 2020 at 7:03 PM.
