Blackhawk raises $230 million in IPO

Safeway Inc. subsidiary and gift card mall innovator Blackhawk Network sold 10 million Class A shares and raised $230 million in its initial public offering (IPO) on April 19, 2013, about $30 million more than the Pleasanton, Calif.-based company previously estimated. The trading day closed with Blackhawk shares trading at $26.01, up 13 percent from the initial $23 share price set by Blackhawk, and up from the expected range of $20 to $22. At the IPO price, Blackhawk's market value would be approximately $1.2 billion.

Blackhawk trades on the Nasdaq Global Select Market under the symbol "HAWK." In its Securities and Exchange Commission filing for the IPO, Blackhawk reported its 2012 revenue was $959.1 million, up 28 percent from 2011. Blackhawk disclosed that it processed 216 million transactions worth a load value of $8.5 billion in 2012. It facilitates gift card sales for over 500 retailers in the United States, primarily through more than 100,000 active retail distribution locations.

Blackhawk sold a 19 percent stake in the IPO, according to its filing; additionally, Safeway may prevent Blackhawk from selling additional stock so that the parent company can maintain the 80 percent ownership required to complete a tax-free spinoff. The filing noted that Safeway informed Blackhawk it has no plans for such a spinoff.

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