Albertsons Companies Inc is a US centuries-old grocer with the many iconic supermarket brands in its portfolio. Albertsons Companies Inc ticker symbol is ACI and the expected stock price was between $18-20. Albertsons planned to make 65.8 million shares of Class A common stock available, raising up to $1.316 billion, but actually priced at $16 a share and raised $800 million through the sale of 50 million shares.
This IPO will be underwritten by 24 banks; BofA Securities, Goldman Sachs & Co., J.P. Morgan and Citigroup will take the lead. Once the IPO takes place investors would own 73%, should underwriters exercise their option to purchase shares in full. The most significant shareholders are:
- Cerberus (private-equity fund) =31.9%
- Kimco Realty Corp (real-estate investment trusts) = 8%
- Klaff Realty L.P. (real-estate investment trusts) =11.7%
- Lubert-Adler Management ( real-estate fund) =11.7%
- Schottenstein Stores Corp (developer of shopping center) =11.7%
Technology is expected to be the growth driver. The chaos surrounding the Coronavirus pandemic exemplified the importance of online commerce. The company aims to improve technology to increase efficiency at stores and distribution centers and hence, customer service.
Albertsons have stated its 'Own Brands' have a 25.4% penetration, which represents sales that amount to over $1 billion a year. The company operates 1,726 pharmacies. Health care consolidation could result in price pressure unless the company comes up with new revenue streams or cost reductions.
How can you take part in the Albertson's IPO?
We're excited to share that Admiral Markets is adding the shares of the company to our Invest.MT5 account offering! As of June 26, 2020, shares in Albertsons Co Inc. are available for investment to all Admiral Markets clients with Invest.MT5 accounts.
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