Milwaukee-based Roundy's Inc. today launched its initial public offering of 19.2 million shares of common stock priced $8.50 per share.

The shares are traded on the New York Stock Exchange under the ticker symbol "RNDY."

Roundy's is offering 14.7 million shares of common stock and selling stockholders are offering 4.5 million shares of common stock. The underwriters have a 30-day option to purchase up to an additional 2.9 million shares from the selling stockholders to cover over-allotments.

Roundy's expects to receive proceeds, net of underwriters' discount and commissions and estimated offering expenses payable, of approximately $111.15 million from the offering.

The company intends to use the net proceeds, together with borrowings under its new senior credit facility, to repay all of its outstanding borrowings and other amounts owed under its existing credit facilities.

David Livingston, a grocery industry analyst and a former market research manager for Roundy's, was not impressed with today's IPO.

"At that price ($8.50), obviously Wall Street doesn't have a lot of confidence in it," Livingston said. "It's probably not a good investment…I don't think it's going to change much, being public. They are kind of in a survival mode right now. They have a lot of challenges. They are still facing an onslaught of new competitors, they have debt to repay, and now they've committed to this dividend. I think that getting the cash, it helps them last a little longer. It's business as usual for the time being."

Walmart plans to open several new stores with groceries in the Milwaukee area and in Chicago and the Twin Cities, which will cut into Roundy's market share, Livingston said.

Roundy's also faces competition from Woodman's Foods, Piggly Wiggly Stores and Sendik's Food Markets, among others.

"Once all of these Walmarts open, and the next Woodman's opens (in Waukesha), then we're going to see (Roundy's) start to make changes," Livingston said. "I don't know what those are going to be, but I'm sure we'll see some store closings. I think you might see them sell the warehouse (in Oconomowoc). There will probably be layoffs."

Roundy's has about $800 million in debts, Livingston said. "They'd like to pay down the debt."

Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC, along with Jefferies & Company Inc. and Robert W. Baird & Co. Inc. of Milwaukee, are acting as joint book-running managers for the offering. Moelis & Company LLC acted as financial advisor to Roundy's.

Roundy's is a leading grocer in the Midwest with nearly $4.0 billion in sales and more than 18,000 employees. Founded in Milwaukee in 1872, Roundy's operates 159 retail grocery stores and 99 pharmacies under the Pick 'n Save, Rainbow, Copps, Metro Market and Mariano's Fresh Market retail banners in Wisconsin, Minnesota and Illinois.