PHILADELPHIA -- Aramark Holdings Corp. set its initial public offering price at $20 a share yesterday, at the low end of its expected range. The stock began trading on the New York Stock Exchange today under the symbol "ARMK."
Aramark sold 28 million of the 36.3 million shares in the offering, with existing shareholders selling another 8.3 million. The company raised $725 million through the IPO, which is expected to close on Dec. 17.
The company will have an equity value of about $4.60 billion at the IPO price of $20. Aramark has said it will use the proceeds to repay debt, which was $5.82 billion on Sept. 27. Aramark reported revenue of $13.95 billion and net income of about $70 million for fiscal 2013.
This will be the third IPO for the Philadelphia-based provider of vending, food, facilities management and uniform services. The company's chairman, Joseph Neubauer, who owns about 10% of Aramark, led a buyout in 1984 and helped bring the company back to public ownership in 2001. He then led its 2007 buyout with a group of private-equity firms that included GS Capital Partners, JP Morgan Partners and Warburg Pincus.
Eric Foss, who previously held chief executive posts at Pepsi Beverages and Pepsi Bottling Group, last year succeeded Neubauer as Aramark's chief executive. Neubauer remains chairman.