American Healthcare REIT Inc. raised $672 million in an initial public offering near the bottom of a marketing range, continuing a streak of mediocre performances as more businesses list.
A statement confirmed a Bloomberg News story that the Irvine, California-based senior housing and assisted care business sold 56 million shares for $12 apiece on Tuesday after promoting them for $12 and $15. Based on US Securities and Exchange Commission records, the real estate investment trust is worth nearly $1.5 billion at that price.
The self-managed REIT joins KKR & Co.-backed BrightSpring Health Services Inc. and Amer Sports Inc. last month in testing whether a two-year US IPO drought is over. In its $693 million IPO, BrightSpring sold shares for $2 below the marketing range and have declined 13%. The stock has risen more than 16% after Amer Sports raised $1.37 billion by pricing its shares $3 below their market range.
The IPO will be one of 10 on US markets this week including a biotechnology company, insurer, and Mexican supermarket chain. This week, those listings are expected to raise over $1 billion, the fourth week in a row.
More: US IPOs Set for Fourth Week of $1 Billion+ Volume Bloomberg data shows IPO volumes of $1.19 billion to $1.56 billion over the previous three weeks, with a fourth making it the longest sequence since 2022.
American Healthcare filed for an IPO in 2022 and wants to use the revenues to pay off debt, according to papers.
According to its documents, the investment entity buys, owns, and manages medical office buildings, senior residences, skilled nursing homes, and hospitals. On Sept. 30, it had over 300 properties in Indiana, Ohio, Michigan, Texas, and Missouri and valued them at $4.6 billion. UK and Isle of Man properties are also owned.
Morgan Stanley and Bank of America Corp. lead the offering. American Healthcare will list its shares on the New York Stock Exchange as AHR on Wednesday.
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