Finally, an IPO we were expecting actually hit the market as planned! And this one made an actual splash!
MGM Growth properties landed Tuesday night at $1.05B, and it hit several landmarks. It’s the first NYSE listing of 2016, it’s the first REIT IPO of the year (since American Farmland’s $48.0M offering in October 2015), the fourth largest REIT since 2001, and the largest IPO of 2016 (since First Data Corp landed at $2.8B, also in October 2015).
We’ve written about REITs before – namely the Paramount Group’s $2.6B IPO in November 2014 – which stands as the largest REIT since 2001, and we may yet have opportunity to discuss them further. There are typically a few more each year – 2015 saw 6 REITs and 2014 saw 5 – and while 2016 has thus far been far from typical, there are currently three other REITs in the backlog.
As for the IPO outlook on the whole, MGM Growth Properties is the ninth of the year, and as we discussed earlier this week, the market is (maybe, kind of?) starting to percolate a bit. Just last night, American Renal Associates Holdings, Inc. made its debut, with $161.3M in proceeds. Like MGM Growth Properties and Bats Global Markets, American Renal also priced well, near the top of its range.
Continuing the positive trend, three more IPOs are expected in April, including SecureWorks, the first tech IPO of the year, which is expected to price tonight. In fact, none of the three remaining anticipated April debuts are from Healthcare, which is finally loosening its grip as the market wakes (knock on wood!) from its slumber.
We’ll be back at the end of the month to report on the rest of April’s activity, and whatever else this suddenly hopeful Spring may have in store.