Blackhawk completes USD230m IPO

blackhawknetwork

Worth over USD1bn?

The gifts card provider Blackhawk has raised USD230m and finished with share above the market range after completing its Initial Public Offering, according to Bloomberg.

The prepaid and financial payments company’s shares rose by 13% to reach USD26.01 – originally priced at USD23 each. It is estimated that the market value of Blackhawk – which is owned by grocery giant Safeway – would be approximately USD1.2bn.

Although the company has sold around 19% of its stake in the IPO, it is unlikely to sell any more. This is because Blackhawk needs an 80% ownership in order to retain an important tax-free spinoff option. The sale was led by Goldman Sachs, Citigroup, Deutsche Bank and Bank of America. 

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