Albertsons Companies Inc., the Idaho-based American grocery store company which had experienced a record 34 per cent jump in sales on a year-on-year basis on April when Americans had been hoarding up households and grocery items due to the lockdowns, had witnessed a 3 per cent fall of its shares’ prices at its NYSE debut, a day after the US supermarket operator had raised roughly $800 million at its NYSE IPO.
In point of fact, at an utterly lacklustre NYSE IPO on yesterday, Albertsons had managed to sell 50 million shares at $16 apiece, missing its target range of 65.8 million shares, while the IPO price had also missed a target of between $18-$20 per share.
Besides, according to Renaissance Capital, the Albertsons’ public market listing had marked up an end of the IPO market’s longest streak of a deal valued over a company’s target range since the era of Great Financial Depression in 2009.
In tandem, Albertsons entrance into the NYSE came forth as its private equity owner, Cerberus Capital Management LP, which has also been an investor for the company over 14 years, had been trying to take to public for more than five years, however, investors’ scepticism over a downsized US payroll over the coming months amid worries of a second layoff wave had largely weighed on its IPO and market debut.
Lacklustre Albertsons IPO underscores upscaled market uncertainty
Meanwhile, since the Idaho-based company had winded down its first trading day 3 per cent down to $15.51 per share, below its IPO price of $16 per share, several market analysts including Wall St.
lenders were quoted saying that the Albertsons listing could have remarked the onset of another drought in IPO market this year, while beholding beyond the ongoing crisis, Albertsons Chief Executive Vivek Sankaran said in an interview with a press agency following its jejune debut in the NYSE, “Things are so volatile in this market. Our perspective was that we are in for the long term. ”