US-based grocery chain Roundy’s raised $163m from its initial public offering (IPO) when it floated on Wednesday, selling 19.2 million shares at the price of $8.50 per share.
The shares were priced below the range of $10-$12 set by Roundy’s last month while a million extra shares were offered in the flotation. Shares finished slightly up, on $9.00 after the first day’s trading.
Of the $163m figure, about $35m will go to shareholders, the largest being private equity firm Willis & Stein, which divested nearly three million shares in the offering but which retains 36.7% of Roundy’s’ shares.
Northwestern Mutual Life Insurance sold about 265,000 shares and retains 3.3% of the shares. Institutional shareholders in Roundy’s also include private equity firm AlpInvest Partners (4.9%) and investment firm Norwest Equity Partners (4.0%).
Roundy’s itself will come away with proceeds of more than $116m, which will be used to repay debts incurred from a first lien credit facility, which totals $689m. Roundy’s made a net income of about $39m from revenues of about $2.87bn in the nine months leading up to 1st October, slightly up from similar figures the previous year.
Underwriters for the offering were JP Morgan, Credit Suisse, Jefferies, Baird, BMO Capital Markets, BB&T Capital Markets and Rabo Securities. The underwriters have the option of purchasing nearly 2.9 million shares to cover over-allotments.