Boise-based grocery giant Albertsons announced it has filed a registration statement with the Securities and Exchange Commission for an initial public offering.
According to a statement from the company, the amount of securities offered will be determined by market conditions and other factors at the time of the offering. The number of shares of stock to be offered and the price range for the offering have not yet been determined.
The paperwork filed with the SEC on Friday, reveals an offering of $100 million in common stock and $100 million in convertible preferred shares. This is likely a placeholder for a deal that it could raise to $2 billion, according to Nasdaq.
In 2015, Albertsons made its first attempt to go public but withdrew the offering due to dull market conditions for retail stocks.
“Since I joined the company, we have developed and begun to implement specific productivity initiatives that target $1 billion of annual run-rate productivity benefits by the end of fiscal 2022 to help offset cost inflation, fund growth and drive earnings,” wrote Vivek Sankaran, CEO of Albertsons, in the prospectus letter.
The grocery giant said in its filing that the company has grown through a series of transformational acquisitions over the last six years, including the merger with Safeway in 2015. Also, it highlighted their positive financial momentum with a robust financial performance in fiscal 2018, generating net sales of $60.5 billion, Adjusted EBITDA of $2.7 billion, and Adjusted Free Cash Flow of $1.4 billion.
Albertsons has lowered its debt from $10.52 billion in November 2018 to $8.34 billion as of last November through store leasebacks and other measures.
The grocery chain, founded in 1939, has 2,260 stores across 34 states and the District of Columbia, operates 20 banners, with approximately 270,000 employees who serve more than 33 million customers each week.
“We are proud of the progress we have made over the past few years, and believe we have a long runway for growth ahead of us. At Albertsons, we are just beginning the next chapter in our rich history, and we welcome you to join us on this exciting journey,” added Sankaran.