Blackhawk Network sets IPO price at $20-$22 per share - SWY, C

Northern, WI 04/09/2013 (avauncer) - Blackhawk Network Holdings Inc., a subsidiary owned by North America’s food and drug retailer Safeway Inc. (NYSE:SWY) (Current:  $25.22, Up by: 1.20%), is planning to raise as much as $220 million in its U.S. initial public offering (IPO).

The gift-card provider Blackhawk Network Holdings said it will offer 10 million shares in an IPO at an estimated price of $20 to $22 per share. According to the company, the IPO will consist of shares offered by existing stockholders, including Safeway.

Last year, Safeway announced its plans to sell a minority stake in Blackhawk. Blackhawk sells gift, prepaid debit cards, prepaid wireless phone cards in the United States and 18 other countries. It sells its services through a network of more than 1,00,000 retailers globally. The company offers cards from over 300 brands, including Barnes & Noble, Starbucks, Visa, iTunes, and the NBA etc.

Blackhawk would be valued at $1.09 billion at the midpoint of the offering range, according to a U.S. SEC filing.

Blackhawk has filed application to list its shares on the NASDAQ Global Select Market under the symbol ‘HAWK’. Goldman, Sachs & Co., Citigroup Inc (NYSE:C) (Current:  $43.56, Up by: 1.28%), Deutsche Bank Securities and BofA Merrill Lynch will serve as joint-bookrunning managers.

Blackhawk’s sales increased 28% to $959.1 million in 2012. About 15% the last year’s sales came from the company’s international business, which includes the U.K. and Australia. It also plans to start selling its services in China this year.

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