JACKSONVILLE, Fla. – Late Thursday, Southeastern Grocers Inc. announced it is was postponing its planned initial public offering -- just one day before the deal was expected to be priced.
The Jacksonville-based supermarket chain that runs Winn-Dixie, Bi-Lo and Harveys did not give a reason for the postponement, according to our news partners, Jacksonville Daily Record.
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“The company will continue to evaluate the timing for the proposed offering as market conditions develop,” Southeastern Grocers said in a news release.
Before the company’s announcement, Reuters news service reported it was pulling the IPO because investors were not willing to meet its targeted price range, citing an unnamed source.
Southeastern Grocers said in an updated filing last week with the Securities and Exchange Commission it wanted to sell 8.9 million shares at $14 to $16.
All of the shares were being sold by a group of investment firms that own the company. They were issued shares in exchange for debt when Southeastern Grocers completed a Chapter 11 bankruptcy reorganization in 2018.
Southeastern Grocers expects to operate 423 supermarkets under the Winn-Dixie, Harveys and Fresco y Mas brands after completing the sale of more than 100 stores, including stores operated under the Bi-Lo banner.
The 423 stores produced sales of about $8 billion in 2020.
Although the stock market has been trading near record highs and IPO stocks have done particularly well, grocery store stocks have received a “lukewarm reception” from investors, Reuters said.