Reuters reports that Southeastern Grocers Inc, the operator of U.S. supermarket chains Winn-Dixie and Harveys, has decided to cancel its just-announced initial public offering (IPO). It also canceled a planned IPO in 2014.
“The company will continue to evaluate the timing for the proposed offering as market conditions develop,” the company said in a statement.
Reuters reports that internally, the company was unhappy with the price range that it seemed likely to hit in an IPO. "Southeastern Grocers shareholders had aimed to sell 8.9 million shares on Thursday at a price range of $14-$16 per share, which would have earned them up to $142.4 million. Southeastern would not have received proceeds from the IPO.
"Southeastern Grocers was formed in 2012 by private equity firm Lone Star Funds to house the Winn-Dixie and Bi-Lo grocery store brands. The company filed for bankruptcy in 2018, hit by competition from bigger retailers."
Seeking Alpha reports that "the move also came hours after rival grocer Albertsons Cos. tumbled 13.9% on an analyst downgrade. Kroger also fell 8.7 percent Thursday in sympathy, and both stocks were trading another 1% or so lower Friday heading into the close."