Southeastern Grocers Rolls Out IPO

Southeastern Grocers, the parent company of brands such as Winn-Dixie, HAS unveiled a rollout of an initial public offering (IPO) of 8.9 million shares of its common stock to be sold by some of its shareholders for an expected price in the range of $14 to $16 per share, according to a Thursday (Jan. 21) announcement.

Southeastern Grocers has sought to trade on the New York Stock Exchange under the “SEGR” ticker symbol. The supermarket company itself is not selling any shares. Investors selling shares plan to grant a 30-day choice to buy as many as 1.335 million further shares of common stock. Southeastern Grocers will not get any net funds from the sale of the stock by the selling investors, the release stated.

Goldman Sachs & Co. LLC and BofA Securities are serving as joint lead book-running managers and representatives of the underwriters for the deal. Additional book-running managers for the IPO include Wells Fargo Securities, BMO Capital Markets and Deutsche Bank Securities Inc. In addition, Truist Securities is serving as a co-manager for the IPO.

Southeastern Grocers is the parent company and home of Winn-Dixie, Harveys Supermarket, Fresco y Más and BI-LO. The company says it is among “the largest conventional supermarket companies in the U.S.”

The news comes as the long-anticipated IPO of Albertsons, the Idaho-based supermarket company, proceeded in June following often-fraught years of planning. Albertsons sold 50 million shares at $16 each, taking in $800 million – much less than the 68 million shares and $1.5 billion fundraise once expected. The Albertsons portfolio encompasses brands such as Shaw’s, Jewel-Osco, Vons and Safeway.

Grocery shopping, once a weekly physical activity conducted on the weekends for most consumers, has become a very different animal in the last year, as shoppers have dramatically changed their shopping preferences. PYMNTS research shows that 22.7 percent of grocery shoppers are ordering groceries online to be delivered at home more currently than they did pre-pandemic.