American Healthcare REIT aims to raise up to $840 mln in US IPO (updated)

American Healthcare REIT

29/01/2024 11:51

(Adds detail on REIT's investments in paragraphs 6-7)
       Jan 29 (Reuters) - American Healthcare REIT said on
Monday it was aiming to raise up to $840 million in an initial
public offering (IPO) in New York.
    The move comes against the backdrop of a nascent recovery in
the IPO market amid firming bets of a soft landing for the
economy. Companies waiting to list their shares have finally
started to move ahead with their plans as markets rally.
        The recovery, however, still remains uneven. Last week,
cancer drug developer CG Oncology  CGON.O  
    saw a warm reception
     to its shares when it started trading on the Nasdaq, while
healthcare firm BrightSpring  BTSG.O  
    had a tepid debut
    .
  
        American Healthcare REIT had initially planned the share
sale in 2022, when the U.S. Federal Reserve's policy tightening
had squeezed markets.
  
    The real estate investment trust said it plans to sell 56
million shares priced between $12 and $15 each.
        Based in Irvine, California, the REIT owns a portfolio
of several clinical healthcare properties including medical
office buildings, skilled nursing facilities, hospitals and
senior housing facilities.
  
        It employs 112 people and had nearly $4.6 billion of
assets as of Sept. 30.
  
        Real estate investments typically provide a better hedge
against inflation and market volatility during times of economic
turmoil.
  
        But REITs 
    were among the worst performing sectors last year
    , weighed down by factors ranging from high interest rates
to tepid demand for office space in an era of remote work.
  
        BofA Securities and Morgan Stanley are the lead
underwriters for American Healthcare REIT's IPO. The REIT is
seeking a listing on the New York Stock Exchange under the
symbol "AHR."
  

 (Reporting by Niket Nishant in Bengaluru; Editing by Shinjini
Ganguli and Maju Samuel)
 ((Niket.Nishant@thomsonreuters.com;))