Janus Living Inc. has set the price for its initial public offering at $20 per share, completing the sale at the top end of the range it marketed to investors. The pricing results in gross proceeds of $840 million, according to people familiar with the matter.
The Denver-based real estate investment trust expanded the base size of the offering by $100 million, up from an original target of $740 million. The company had marketed the shares in a range between $18 and $20 apiece and ultimately elected to price at the upper bound.
Janus Living focuses on properties that serve seniors and is being separated from Healthpeak Properties Inc. The carve-out structure was part of the transaction framework announced as the company prepared to list. Sources indicate the company intends to direct most of the IPO allocation to large institutional investors and to existing shareholders of Healthpeak.
The IPO was scheduled to price after the New York market closed today. The reporting on the pricing and offering size increase was attributed to individuals familiar with the transaction.
Context and structure
Janus Living will operate as a real estate investment trust with a focus on senior housing properties. The company emerged from Healthpeak Properties as a distinct, publicly listed entity via this offering.
Allocation approach
According to the reporting, the issuer plans to allocate the majority of shares to institutional buyers and to holders of Healthpeak stock. That allocation plan was cited by people familiar with the matter as part of the offering strategy.
Key points
- Janus Living priced its IPO at $20 per share, the top of the marketed range, raising $840 million.
- The REIT increased the base offering size by $100 million from an initial $740 million target.
- The company, carved out from Healthpeak Properties, plans to direct most IPO shares to large institutional investors and existing Healthpeak shareholders.
Risks and uncertainties
- The reported pricing and offering details were provided by unnamed people familiar with the matter; those reports represent the available account of the transaction.
- The final allocation will concentrate most shares with large institutional investors and existing Healthpeak shareholders, which affects how the offering is distributed among investor types.
- The offering size was changed from an original target prior to pricing, indicating that the base size underwent a revision before the deal closed.