Southeastern Grocers Inc., the parent company of Winn-Dixie, is selling 8.9 million shares of stock in an initial public offering that will continue to leave a group of investment firms in control.
All of the shares are being sold by the investment firms, with the Jacksonville-based company not receiving any proceeds from the IPO.
An updated registration statement filed with the Securities and Exchange Commission on Jan. 21 shows Fidelity Investments with 21% of Southeastern Grocers’ stock. It will continue to own 20.9% after selling a small number of shares in the IPO.
A company controlled by Lone Star Funds is selling about 4.35 million shares, reducing its stake from 11.6% to 1.5%.
Funds affiliated with Lone Star owned Southeastern Grocers before the company went through a prepackaged Chapter 11 reorganization in 2018.
The reorganization plan gave a group of investment firms stock in exchange for debt. But before the Jan. 21 SEC filing, the company had never revealed which firms received stock and owned the company.
The second-largest stockholder is Osterweis Capital Management with 18.4%, but that firm is selling 2.25 million shares in the IPO, reducing its stake to 13.2%
Millstreet Capital Management LLC owns 14.3% and is not selling shares, leaving it as the second-largest stockholder in the company after the IPO.
Southeastern Grocers operated 523 stores in seven states at the end of 2020, according to the latest filing.
After completing the sales of some stores, including all operating under the Bi-Lo brand, the company will be left with 423 stores operating under the Winn-Dixie, Harveys and Fresco y Mas banners.
Final results for 2020 are not yet available but the filing said the company expects to report sales of about $8 billion at the 423 remaining stores, with sales at stores open for more than one year up 17.6%.
The big jump in sales resulted from more consumers eating food at home during the COVID-19 pandemic, it said.
Southeastern Grocers expects to report 2020 net income between $317 million and $424 million, compared with a net loss for 2019.
Southeastern Grocers hopes to sell the 8.9 million shares at $14 to $16 each. Final pricing for the IPO is expected next week, and the stock will then begin trading on the New York Stock Exchange under the ticker symbol “SEGR.”
The latest filing also said the company intends to pay a quarterly dividend equal to 2.75% of the IPO price.
Southeastern Grocers will be the second Jacksonville-based company to go public this month.
Dream Finders Homes Inc. priced its IPO of 9.6 million Class A shares at $13 each late on Jan. 20 and the stock began trading on the Nasdaq Global Select Market the next morning.
The home builder’s stock surged higher when trading began on Jan. 21, opening at $19.51.
Dream Finders trades under the ticker symbol “DFH.”