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Days after the initial public offering for Fairway Holdings Group, the stock for the famed New York grocer has soared.
The IPO of 13.7 million shares went for $13 each – more than the initial estimate of $10 to $12 per share – raising $177 million that will help bankroll the supermarket’s expansion. Trading on the NASDAQ under the stock ticker “FWM,” Fairway’s stock price had jumped by 33 percent after the first day of trading.
Fairway, which remains controlled by private equity firm Sterling Investment Partners, operates 12 supermarkets. According to reports, the company plans to open as many as 300 locations nationwide.
According to the New York Times, proceeds from the IPO will also be used to pay for some accrued dividends and pay bonuses of $7.3 million, including $1.8 million to Howard Glickberg, vice chairman of development at Fairway and grandson of the company's founder.