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Safeway's Blackhawk gift card unit sets IPO price range at $20-$22 per share
April 8, 2013 / 11:51 AM / 5 years ago

Safeway's Blackhawk gift card unit sets IPO price range at $20-$22 per share

(Reuters) - Blackhawk Network Holdings Inc, grocer Safeway Inc’s SWY.N gift card and payment service unit, is offering 10 million Class A shares at $20 to $22 per share.

The sign outside the local Safeway grocery store is framed by a tree in Arvada, Colorado October 14, 2010. REUTERS/Rick Wilking

At the top end of the expected price range, the company will raise up to $220 million in proceeds.

Safeway, the second-largest U.S. grocery store operator, said in September that it plans to take the Blackhawk unit public in the first half of 2013.

Blackhawk said the IPO will consist solely of shares to be offered by existing stockholders.

Blackhawk sells prepaid gift, debit and telephone cards through thousands of retail outlets, including supermarkets, pharmacies and convenience stores. It also runs the payment and gift card infrastructure for Safeway and other retailers.

Blackhawk listed Goldman Sachs & Co, BofA Merrill Lynch, Citigroup and Deutsche Bank Securities as lead underwriters for the offering.

The company, founded in 2001 as a division of Safeway, reported adjusted net income of $50.3 million on revenue of $949 million in 2012.

Blackhawk intends to list its common stock on the Nasdaq under the symbol ”HAWK.

Reporting by Tanya Agrawal in Bangalore; Editing by Maju Samuel

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