Retail Properties of America's (RPAI) IPO was priced last night at $8.00 per share. This was below the anticipated price range of $10 per share to $12 per share. The $8.00 price is equivalent to $3.20 per share for original investors due to the 2.5 to 1 reverse stock split RPAI recently executed. Based on the $8 share price, RPAI raised $254.4 million in the IPO, which was below the estimated $350 million specified in RPAI's S-11 filing last week. I am not sure if the use of proceeds changed based on this lower equity raise, but originally, lending affiliates of the underwriters were scheduled to receive $170 million from IPO proceeds to repay RPAI debt.
The $8.00 IPO price does not mean the stock will trade at this price. It looks like early trades are about 9% to 10% above the IPO price, which is positive.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment