American Healthcare REIT shares jump 7% in NYSE debut (updated)

American Healthcare REIT

07/02/2024 17:32

(Updates with debut price in second paragraph, adds background)
       Feb 7 (Reuters) - Shares of American Healthcare REIT
 AHR.N  rose 7% to $12.85 in their New York Stock Exchange debut
on Wednesday, further underscoring a rebound in the market for
new listings after a two-year lull.
    The stock was listed at $12.85 per share, above its initial
public offering (IPO) price of $12 apiece.
    On Tuesday, the company raised $672 million by selling about
56 million shares at the lower end of its targeted range.
    The IPO market is looking for a turnaround in fortunes as
bets of a soft landing for the U.S. economy firm up. Social
media firm Reddit, cloud security company Rubrik and software
startup ServiceTitan are all expected to go public in 2024.
    REITs typically provide a better hedge against inflation and
market volatility during times of economic turmoil.
    The sector, however, was among the worst performers last
year, weighed down by factors ranging from high interest rates
to tepid demand for office space in an era of remote work.
    American Healthcare REIT had initially planned the share
sale in 2022, when the U.S. Federal Reserve's policy tightening
squeezed markets.
    Last month, the REIT 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.
    American Healthcare REIT employed 112 people and had nearly
$4.6 billion of assets as of Sept. 30.
    
    



 (Reporting by Mehnaz Yasmin in Bengaluru; Editing by Shounak
Dasgupta and Anil D'Silva)
 ((Mehnaz.Yasmin@thomsonreuters.com))