Fairway Prices IPO as Investors Sell Shares

NEW YORK — Investors in Fairway Market Holdings are seeking to raise up to about $163.8 million in an initial public offering, the company said in a filing Thursday.

The company, parent of the 12-unit, high-volume Fairway banner in and around New York City, said in a filing with the Securities and Exchange Commission that investors are offering 13.7 million shares for $10 to $12 each. The shares would be only offered by existing shareholders. Sterling Investment Partners, which is the company’s majority owner, would remain so after the offering. The outstanding shares would represent a 33% stake in the company, according to reports.


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The filing should come to market on April 16, according to a projection by Bloomberg News. Fairway said the IPO was delayed when its Brooklyn location was gutted by Hurricane Sandy last October. The shares will be listed under the symbol FWM and will trade on Nasdaq.

As previously reported, Fairway posted a loss of $56.2 million for the 39 weeks that ended Dec. 30, 2012, on sales of $482.5 million. The company has posted losses for the last several years as it has aggressively rolled out new stores, adding eight locations since 2009.

Read more: Fairway Losses Continue as Sales Grow [3]

“We believe our stores are among the most productive in the industry in net sales per store and net sales per square foot as a result of our distinctive merchandising strategies, value positioning and efficient operating structure,” the company said in its most recent filing. For stores open more than 13 full months, sales per store averaged $64.8 million in the last fiscal year, and sales per selling square foot totaled $1,859, the company said.

Although the company itself will not receive funds from the stock sale, the IPO will create a market for the shares, which could allow it tap the market to raise funds for expansion in the future.

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