Roundy's Sets IPO Price: Report

MILWAUKEE — Roundy's Supermarkets [2] here reportedly plans to sell its stock for approximately $11 per share when it launches its initial public offering, according to local reports.

Those reports, which quoted an amended filing with the Securities and Exchange Commission, said Roundy's hopes to raise $111 million through the sale of roughly 50% of its outstanding stock, including 11.4 million shares held by the company; 6.8 million shares held by other stockholders; and options for those stockholders to sell another 2.7 million shares.

That would leave the company with 41.5 million shares outstanding, which will reportedly be held by Willis Stein & Partners, the Chicago-based investment firm that has owned Roundy's since 2002.

According to the reports, Roundy's will use the cash from the IPO, along with proceeds from refinancing its $800 million debt, to pay off all existing debt and pay a quarterly dividend of 23 cents per share.

In preliminary financial results for fiscal 2011, Roundy's said it expects to report sales rising 2% to $3.8 billion, with a decline of 2% in same-store sales.  The prospectus also said pre-tax profits are expected to drop 1.6% to $78 million.

Once the IPO is completed, the company's proposed trading symbol will be RNDY, the reports said.