(Reuters) - Private equity owned Roundy’s Parent Co Inc filed for a $230 million initial public offering with U.S. regulators on Monday, taking advantage of the thaw in the U.S. IPO market.
Stock market volatility in the wake of the Euro zone debt crisis and fears of a U.S. recession has slowed down IPO activity, but the successful debut of group discount site Groupon (GRPN.O) is luring companies back into the market.
Roundy’s, which operates about 158 grocery stores under the Pick ‘n Save, Rainbow, Copps, Metro Market and Mariano’s Fresh Market retail banners, said it plans to use the proceeds from the offering to pare down debts of over $800 million.
The Milwaukee, Wisconsin-based supermarket chain, which is owned by private equity firm Willis Stein & Partners, did not specify the stock exchange on which it intends to list its shares.
Roundy’s competes with supermarkets such as Piggly Wiggly and Festival Foods, as well as with supercenters such as SuperTarget and Walmart.
For the quarter ended October 1, Roundy’s said it earned $12.4 million, up 30 percent from the previous year. Same-store sales — sales at stores open at least a year — rose 1.7 percent in the quarter.
The offering will be underwritten by Credit Suisse and J.P. Morgan.
The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.
Reporting by Eileen Anupa Soreng in Bangalore; Editing by Esha Dey