REIT IPO Prices at Low End of Range
Physicians Realty Trust (NYSE: DOC) priced its initial public offering (IPO) at $11.50 a share, the low end of the expected range of $11.50 to $13.50, but the firm offered 10.4 million shares instead of the originally planned offering of 8 million shares. The IPO raised approximately $120 million.
The company, which will operate as a REIT, is a self-managed health care real estate company that plans to acquire, develop, own and manage health care properties that will be leased to physicians, hospitals and other health care services.
The underwriters of the offering were granted a 30-day option on 1.2 million additional shares.
The company plans to use the net proceeds from the offering to purchase operating partnership units. The partnership will use approximately $38.7 million to repay outstanding debt, transfer fees and acquire the 50% stake in a property currently owned by another company. The balance will be used for working capital and general corporate purposes.
Shares are trading up about 0.4% at $11.55 shortly after the opening bell this morning.
Filed under: Healthcare (Business) Tagged: DOC