(Bloomberg) — American Healthcare REIT Inc. rose 10% in its stock market debut after its $672 million initial public offering added to a string of modest performances from U.S. exchanges.
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Shares of the Irvine, California-based senior housing and assisted living company opened at $12.85 apiece on Wednesday after the company sold 56 million shares on Tuesday at $12 apiece, the low end corresponds to a market range. Shares closed at $13.22 in New York trading, giving the company a market value of more than $1.6 billion.
The self-managed REIT follows KKR & Co.-backed BrightSpring Health Services Inc. and Amer Sports Inc. last month in testing whether a two-year U.S. IPO drought is finally coming to an end. BrightSpring's shares sold for $2 below the market range in its $693 million initial public offering and have fallen 12% since then. Amer Sports took in $1.37 billion after pricing its shares $3 below the market range, although the stock has risen 16% since then.
American Healthcare's IPO is one of a diverse group this week that includes a biotechnology company and a Mexican grocery chain. Those listings are expected to raise well over $1 billion, which would make this week the fourth straight to hit that mark.
Insurer terminates
One of the 10 companies scheduled to go public in the US this week has already withdrawn its IPO, citing market conditions. Insurer Fortegra Group Inc., a subsidiary of Tiptree Inc., sought to raise up to $324 million on Tuesday.
The next test of a long-awaited recovery in U.S. stocks comes later Wednesday with Kyverna Therapeutics Inc.'s stock sale for more than $304 million. The clinical-stage biopharmaceutical company raised its price range on Monday and will price its shares at or above the upper limit of the marketed range, Bloomberg News reported.
The story goes on
On Thursday, discount retailer BBB Foods Inc., whose main subsidiary operates more than 2,200 Tiendas 3B locations, is seeking to raise $463 million in what could be the largest U.S. initial public offering of a Mexico-based company since 2006.
The listings follow a two-year decline in listings after U.S. exchanges raised a record $339 billion in 2021, according to Bloomberg data. Last year, that total fell to $26 billion, the data shows.
In September, semiconductor designer Arm Holdings Plc's $5.23 billion offering led to a small boost, but that quickly ended after its shares, along with those of three other IPOs, fell below their offering price. Arm shares have gained 51% since the offering price. Birkenstock Holding Plc slipped below its offer price again on Wednesday, while Instacart and Klaviyo Inc. fell 18% and 7.4%, respectively.
Reddit, Shein
Dozens of companies, including social media platform Reddit Inc., fast-fashion retailer Shein and software maker Waystar Holding Corp., have been eyeing the market and deciding whether to move forward with listings or wait.
Read more: US IPOs worth over $1 billion enter their fourth week
American Healthcare, which announced in 2022 that it had filed for an initial public offering, plans to use the proceeds to pay down debt, its filings show.
According to the documents, the investment vehicle acquires, owns and operates a portfolio of properties such as medical practices, senior housing, nursing facilities and hospitals. The company has nearly 300 properties in states including Indiana, Ohio, Michigan, Texas and Missouri and valued its assets at about $4.6 billion as of Sept. 30. It also has properties in the United Kingdom and the Isle of Man.
The offering was made by Bank of America Corp. and Morgan Stanley. American Healthcare shares trade on the New York Stock Exchange under the symbol AHR.
– With assistance from Bailey Lipschultz.
(Updates with closing stock price in second paragraph)
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