Sprouts Farmers Market Inc. on Wednesday announced the pricing of its initial public offering of 18.5 million shares of common stock at a public offering price of $18 per share. The shares will be listed on the Nasdaq Global Select Market and will trade under the ticker symbol “SFM” beginning today.
The company is selling 17,702,215 shares of common stock and certain stockholders are selling 797,785 shares of common stock. The underwriters have an option, exercisable until Aug. 30, to purchase up to an additional 2,775,000 shares from the company. The offering is expected to close on Aug. 6, subject to customary closing conditions.
The company expects to receive net proceeds from the offering of approximately $297.5 million, after deducting underwriting discounts and estimated offering expenses. The company intends to use the net proceeds from the offering to repay approximately $297.5 million of outstanding indebtedness under its term loan facility and to use any remaining proceeds for general corporate purposes.