American Healthcare REIT has announced the pricing of its initial public offering (IPO) at $12 per share, which is the bottom end of its target range of $12-15.
The self-managed real estate investment trust (REIT) launched its IPO on 29 January. It looks to sell 56 million shares in the IPO.
According to a Bloomberg report, California, US-based American Healthcare REIT looks to rake in $672m through this sale of shares.
The pricing of the shares gives the company a market value of about $1.5bn based on the outstanding shares reported in its filings with the US Securities and Exchange Commission.
These shares began trading on the New York Stock Exchange (NYSE) under the symbol “AHR” on 7 February 2024.
The closing date is anticipated to be 9 February 2024, subject to certain customary closing conditions.
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The underwriters have been given a 30-day option to buy up to another 8.4 million shares of its common stock to cover any over allotments.
American Healthcare REIT said that it will utilise the proceeds from the offering to repay around $623.1m of the outstanding amount under the company’s credit facility.
Lead book-running managers for the offering are BofA Securities and Morgan Stanley.
JMP Securities, A Citizens Company, Fifth Third Securities, Regions Securities LLC, and Credit Agricole CIB are co-managers for the IPO.
American Healthcare REIT specialises in acquiring, owning, and operating a diverse portfolio of clinical healthcare real estate properties.
These mainly include medical office buildings, senior housing, skilled nursing facilities, hospitals, and other healthcare-related facilities.
As of 30 September 2023, the company’s total assets were valued at around $4.6bn. These include 298 buildings and integrated senior health campuses across 36 states, the UK, and the Isle of Man, equating to around 18.9 million feet square of gross leasable area.
American Healthcare REIT will use the proceeds from the offering to repay around $623.1m of the outstanding amount under its credit facility.