MILWAUKEE — Roundy’s here saw its stock rise about 6% in its first day of trading Wednesday after it opened at a lower price than had been anticipated.
The company, which operates the Pic ’n Save, Copps, Metro Market, Rainbow and Mariano’s Fresh Market banners in the Midwest, saw its stock open at $8.50 per share and rise to $9 by the closing bell. It trades under the symbol RNDY on the New York Stock Exchange.
As previously reported, the stock had been expected to begin trading this week at $10 to $12 per share.
The company offered 14.7 million shares of common stock, and certain stockholders offered about 4.5 million shares. Roundy’s will not receive any proceeds from the sale of shares by the selling stockholders. Roundy's is owned by Chicago-based investment firm Willis Stein & Partners, which had announced plans for the IPO in December.
Roundy’s said it expected to receive net proceeds of about $111.15 million from the offering, which it plans to use, together with borrowings under its new senior credit facility, to repay all of its outstanding borrowings and other amounts owed under its existing credit facilities.
Credit Suisse Securities and J.P. Morgan Securities, along with Jefferies & Company and Robert W. Baird & Co. Inc., were joint book-running managers for the offering. Moelis & Company was Roundy’s financial advisor.