Fairway Group Holdings Corp. raised $177.5 million in its initial public offering after pricing the shares above the marketed range.
The New York grocer sold 13.65 million shares for $13 each, after offering them for between $10 and $12, according to Bloomberg. The shares represent a 33 percent stake in the company, which operates 12 stores in Connecticut, New Jersey and New York, and is majority-owned by private equity firm Sterling Investment Partners.
Fairway sales increased 14 percent to $554.9 million and posted a net loss of $11.9 million for the year ended April 1, 2012. Fairway derives 65 percent of its sales from produce, organic items and prepared foods. The company will be listed on the Nasdaq Stock Market under the symbol FWM.
In its regulatory filing, Fairway said it plans to grow its store base in population-dense metropolitan areas and has the potential for more than 300 new U.S. shops.
Fairway was founded in 1933 as a modest fruit and vegetable stand by Nathan Glickberg. In 1954, Nathan and his son, Leo, partnered to create the beginnings of the first store at 74th Street and Broadway in New York. At that time, they decided to rename the business and Leo’s wife, Cynthia, suggested using the name Fairway because her own father had successfully operated a business under that name. She felt it was a lucky name.Sterling Investment Partners invested in the business in 2006 as several principals were retiring.
