Albertsons Cos. Postpones IPO Again

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Albertsons Cos. Postpones IPO Again

07/13/2017

Albertsons Cos. has put plans for an initial public offering (IPO) on hold for the second time in the past couple of years, Bloomberg has reported.

The postponement likely results from Amazon’s expected acquisition of Whole Foods, as well as its own “failed courtship” with the Austin, Texas-based natural grocer, the news outlet said. Meal-kit-delivery service Blue Apron Inc. and its own weak IPO performance – with stock opening at $10 per share and dropping 29 percent in just nine trading days – also has likely contributed to the decision.

Prior to Amazon’s June 16 proposal to purchase Whole Foods, Albertsons had been considering reviving its plans for an IPO and going public by the year’s end, sources told Bloomberg. If the grocer went that route, it would have relaunched with a narrower price range and done straight to investors that showed interest in the initial IPO plan.

Boise, Idaho-based Albertsons Cos. originally filed for an IPO in July 2015, with plans to proceed with going public that fall. It anticipated to raise as much as $2 billion in the offering, Reuters reported, but decided that October to delay the IPO until market conditions became more favorable.

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