Last updated on July 3rd, 2019 at 07:24 pm
Milwaukee-based Roundy’s, Inc. announced it has filed a prospectus for a public offering to sell 2.9 million more shares of its common stock.
Certain selling stockholders also will offer 5.9 million shares of the company’s common stock. The underwriters will be granted a 30-day option to purchase up to an additional 1.3 million shares of common stock from the selling stockholders, all at the offering price less the underwriting discount.
The parent company of Pick ‘n Save grocery stores intends to use the net proceeds for general corporate purposes, which it expects to include funding working capital and operating expenses as well as capital expenditures to build out the 11 Chicago Dominick’s stores it acquired from Safeway Inc. Roundy’s is converting the Chicago stores to Mariano’s Fresh Markets.
Roundy’s will not receive any of the proceeds from the sale of shares by the selling stockholders, including the shares to be sold by the selling stockholders if the underwriters exercise their over-allotment option.