PLEASANTON, CA - Safeway operator AB Acquisition has reportedly hired bankers to begin planning an initial public offering for later in 2015, according to CNBC.

Sources told CNBC that the expected IPO would raise more than $500 million. This would be Safeway’s third IPO on record.

AB Acquisition is ran by an investor group led by Cerberus Capital Management, which also controls Kimco Realty, Klaff Realty, Lubert-Adler Partners, and Schottenstein Stores.

According to CNBC, a spokesman for Cerberus Capital was not yet available for comment, and Brian Dowling, a spokesman for AB Acquisition, said the company does not "comment on rumors."

As we’ve previously reported, Safeway and Albertsons completed a $9.2 billion merger earlier this year, creating the second largest market share among all U.S. supermarket chains. Reuters reports that Safeway grew from 1,326 stores as of January 3, to over 2,300 stores and 250,000 employees today.

The company's first IPO in 1927 was valued at $226.

Stay tuned for the latest updates on the company’s possible IPO.

Safeway