Grocery Outlet boosts expected IPO pricing, lifting valuation to up to $1.6 billion
Grocery Outlet Holding Corp. raised on Tuesday the expected pricing range of its initial public offering, which could now value the extreme-value retailer of name-brand consumables and fresh products at up to $1.63 billion. The company said it now expects the IPO to price between $18 and $19 a share, up from a filing last week showing an expected pricing of $15 to $17 a share. The company is offering 17,187,500 shares for sale to the public, to raise up to $362.6 million. Shares of the California-based company, with 323 stores across the West Coast and Pennsylvania, are expected to list on the Nasdaq under the ticker symbol “GO.” The lead underwriters are BofA Merrill Lynch, Morgan Stanley, Deutsche Bank Securities and Jefferies. The company reported net income of $15.9 million on net sales of $2.29 billion in 2018, after a profit of $20.6 million on sales of $2.08 billion in 2017. The company is looking to go public at a time the Renaissance IPO ETF has gained 4.5% over the past three months while the S&P 500 has tacked on 3.1%.
Source : MTV
