(Adds details on IPO withdrawals, analyst comments)
By Neha Dimri
Aug 19 Southeastern Grocers LLC, which operates
supermarket chains Winn-Dixie and BI-LO, called off its plans
for an initial public offering, joining a list of companies that
have pulled their offerings this year.
The Jacksonville, Florida-based company did not specify a
reason for withdrawing its IPO in its filing with the U.S.
Securities and Exchange Commission on Tuesday. (1.usa.gov/1kSevmU)
The company had filed for an IPO of up to $500 million in
"With not very exciting topline revenue and growing losses
... it's over leveraged. They don't have the numbers that
investors are interested in," said Francis Gaskins, research
director at Equities.com.
The company runs more than 650 BI-LO and Winn-Dixie stores
in southeastern U.S. states of Florida, Alabama, Louisiana and
Winn-Dixie, which was listed in 1952 on the New York Stock
Exchange in 1952, filed for bankruptcy protection in 2005 and
was taken private by the operator of Bi-Lo in 2012.
Citigroup, Credit Suisse and Deutsche Bank Securities -
underwriters for the offering - and Southeastern Grocers were
not immediately available for comment.
Several firms, mostly small biotech companies, have
withdrawn their IPOs this year. The list includes biotech firms
Ambrx Inc, GeNO LLC and Dimerix Bioscience Ltd and home-building
products maker Associated Materials Group Inc.
"The biotech market was hot earlier this year but has
moderated ... it's not in demand now as it was then and the
biotech companies have not hit their milestones which investors
are interested in," Gaskins said.
There has been a surge in IPO filings since the Jobs Act
went into effect in April 2012. The Act allows companies to pay
lower registration fees and disclose less information to
investors when they go public but provides a shorter timeframe
for complying with regulatory requirements.
Some of the smaller companies find it difficult to complete
the requirements in the short period and are forced to withdraw
Real estate company Aina Le'a Inc cited the short timeframe
between the initial filing and the completion of the audit
process as a reason for pulling its IPO earlier this month.
"Companies have to file 21 days before the road show and so
its a shorter IPO window," said Jay Ritter, a professor and IPO
expert at the University of Florida.
Other companies that have withdrawn their IPOs this year
include pharmaceuticals firm Aptalis Holdings Inc, Waypoint
Homes Realty Trust Inc and oil pipeline operator Devon Midstream
(Editing by Saumyadeb Chakrabarty)