Southeastern Grocers Goes Official With IPO

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Southeastern Grocers Goes Official With IPO

By Bridget Goldschmidt - 01/21/2021
Southeastern Grocers Goes Official With IPO
Southeastern Grocers won’t receive any net proceeds from the sale of its common stock by the selling stockholders.

Southeastern Grocers Inc. has launched an initial public offering of 8.9 million shares of its common stock to be sold by certain of its stockholders, at an anticipated price of $14-$16 per share, in accordance with a previous filing with the U.S. Securities and Exchange Commission. The company isn’t selling any shares in the offering. 

The selling stockholders will grant the underwriters a 30-day option to purchase up to an additional 1.3 million shares of Southeastern Grocers’ common stock. The company has applied to list the shares of common stock on the New York Stock Exchange under the ticker symbol “SEGR.”

Southeastern Grocers won’t receive any net proceeds from the sale of its common stock by the selling stockholders, including from any exercise by the underwriters of their option to purchase additional shares of the company’s common stock from the selling stockholders.

The offering will be made only by means of a prospectus, which can be obtained by BofA Securities or Goldman Sachs & Co. LLC, who are acting as joint lead book running managers and as representatives of the underwriters for the offering.

The company first revealed last year that it was exploring an IPO through an SEC filing that it said at the time would “help enable [it] to make the decision to become publicly traded, subject to market and other conditions.”

Retail Leader Editorial Director Mike Troy wrote last October, "If Southeastern Grocers is able to execute a successful IPO, it will be a remarkable accomplishment for an organization that has experienced a fair amount of turmoil the past decade."

Having emerged from Chapter 11 bankruptcy in 2018, the company embarked on a five-year transformation plan to revitalize its business, which included focusing on its core banners and selling off its Bi-Lo stores.

Jacksonville, Florida-based Southeastern Grocers is one of the largest conventional supermarket companies in the United States, with grocery stores, liquor stores and in-store pharmacies serving communities throughout Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina and South Carolina.