PHOENIX — Sprouts Farmers Market on Tuesday proceeded with pricing of a secondary public stock offering, but offered less stock than it had initially planned to before it delayed the offering last week.
The retailer said that majority owner Apollo Capital Management and other holders of its stock have offered to sell 17 million shares at $37 per share — an offer that would raise $629 million.
The shareholders last week were prepared to sell 22.5 million shares, but delayed the offering, reportedly because of market weakness brought on in part by disappointing quarterly financial results at The Fresh Market announced last week. The $37 price represents a decline of more than 20% since Sprouts announced plans for a secondary offering earlier this month.
Read more: Sprouts Boosts Guidance on Strong Q3 Results
Sprouts said the group of banks underwriting the offering has the option of purchasing up to an additional 2.55 million shares of common stock until Dec. 25. Apollo is selling approximately 8.8 million of the total shares — 10.2 million if the underwriters' option is exercised in full.
|Suggested Categories||More from Supermarketnews|