AdvancePierre Foods plans to raise $400m through IPO

US-based producer of sandwiches and sandwich components, AdvancePierre Foods Holdings, has commenced the initial public offering of its common stock shares to raise $400m.

According to the terms, AdvancePierre intends to sell 11,090,000 shares of common stock while the selling stockholders will sell 7,510,000 shares of common stock.

The intial price per share is expected to be in the range of $20 to $23.

The selling stockholders have given underwriters a 30-day option to buy up to an additional 2,790,000 shares of common stock.

AdvancePierre Foods intends to repay a portion of its first line term loan with proceeds from the offering.

It will not receive the proceeds from the sale of shares by the selling stockholders.

Financial institutions including Barclays, Credit Suisse and Morgan Stanley will serve as joint book-running managers for the offering and as representatives of the underwriters.

Furthermore, Goldman Sachs, BMO Capital Markets and Deutsche Bank Securities will act as joint book-running managers.

Backed by Oaktree Capital, AdvancePierre Foods has more than 4,000 employees and posted revenue of $1.6bn in 2015.

The company offers a wide range of food products comprising breakfast sandwiches, peanut butter and jelly sandwiches, hamburgers and sandwich components, such as fully cooked hamburger and chicken patties.