Safeway Inc.'s gift card and payment service unit, Blackhawk Network Holdings Inc has formally offered ten million Class A shares priced between US$20 and US$22 per share. When the top end of the price range is achieved, the company would be able to raise US$220 million from the share sale.
Safeway is the second biggest US grocery retailer had earlier announced that it would take Blackhawk public by the second quarter of 2013. The IPO consist solely of shares to be offered to existing shareholders.
Blackhawk's business is selling prepaid cards through retail outlets such as pharmacies, convenience stores and supermarkets. It also operates the payment and gift card infrastructure for Safeway and other large retailers.
Blackhawk's shares were listed through underwiters Goldman Sachs, BofA Merill Lynch, Deutsche Bank and Citigroup. The company was established back in 2001 as a subsidiary of Safeway had reported adjusted net income at US$50.3 million from US$949 million in revenues for 2012.
Join the Conversation