Sprouts Farmers Market Prices IPO At $18/share, Above Estimated Range

(RTTNews) - Specialty grocery chain Sprouts Farmers Market Inc. announced the pricing of initial public offering of 18.5 million shares of common stock at $18 per share, above the expected range. The offering is expected to close on August 6, 2013.

In an amended regulatory filing with the U.S. Securities and Exchange Commission, the company had expected to price the initial public offering of 18.5 million common shares between $14.00 and $16.00 per share.

The shares will be listed on the Nasdaq Global Select Market and will trade under the ticker symbol "SFM" beginning on August 1, 2013.

The Phoenix-based supermarket operator is selling 17.70 million common shares and certain stockholders are selling 797,785 shares of common stock.

The underwriters have an option, exercisable until August 30, 2013, to purchase up to an additional 2.775 million shares from the company.

The company expects offering net proceeds of about $297.5 million, after deducting expenses. The company intends to use offering net proceeds to repay indebtedness under its term loan facility and the remaining for general corporate purposes.

Sprouts operated 163 stores in states from Texas to California as of July 19.