Despite other companies, such as luxury department store Neiman Marcus Group Inc, delaying their listing, First Data and Albertsons had planned to press ahead with plans to price their IPOs on Wednesday.
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First Data would still raise $2.6B at the midpoint of the reportedly revised range, with a valuation of about $15B, and more than $18B in debt still outstanding after the IPO. The deal is expected to be priced later today.
The IPO market could use a boost right about now. “There is obviously a lot of price sensitivity for buyers who are saying we are not playing at 18 to 20”. If the market isn’t receptive to newly listed shares, that could discourage IPO investors looking for a quick profit. But Bisignano focused instead on touting the company’s “transformation” since it went private in 2007 and on cutting a few of its $21 billion debt before interest rates rise. The Census Bureau says e-commerce sales in the second quarter were 14% higher than a year ago, but First Data’s first-half sales rose less than one-seventh as fast.
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A similar level of price sensitivity is being placed on supermarket chain Albertsons (ABS), which is also scheduled to price late Wednesday and begin trading Thursday, Sweet said. Albertsons plans to raise $1.6 billion, offering 65.3 million shares at 23 to 26 each.
