Albertsons plans to go Public
Albertsons plans to go Public

Albertsons, the nation's second-largest grocery store -operator, has plans for an IPO. On Wednesday, it filed a preliminary prospectus with the Securities and Exchange Commission and stated that it has planned to raise $100 million.

The filing does not reveal about the number of shares that will be offered and it is also not specified as what would be the estimated per-share price and where it would be traded. The proceeds will be used to repay debts and the other expenses.

In the prospectus, Albertsons has said that it will include the performance of the Safeway properties. The company based in Boise, Idaho is owned by an investor group led by Cerberus Capital Management.

In 2013, Cerberus Capital Management purchased Albertsons and this year, it has purchased the Safeway and Vons chains. After closing its $8 billion buyout of Safeway, Albertsons has now become the largest company based in Idaho in terms of revenue and by employment.

Burt P. Flickinger III, managing director of Strategic Resource Group, said that he is not surprised with the move, as he is aware that Cerberus prefers to monetize its acquisitions. "I think part of it is that (grocery competitor) Kroger's stock is up approximately 300 percent so far during the first half of this decade. It's really the right time for Albertsons to have an IPO", said Burt.

Currently, Albertsons have around 265,000 full and part time workers. The decision to go public could bring many opportunities, including more job security and advancement opportunities for the company's workforce.

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