MGM Growth Shares Climb in First Day of Trading
April 20 2016 - 10:50AM
Dow Jones News
MGM Growth Properties LLC shares climbed in their trading debut
Wednesday, the latest sign that the IPO market could be starting to
thaw.
Shares opened at $22.75, after pricing late Tuesday at $21 each,
the high end of its target range. The stock recently climbed 7.9%
to $22.66.
The real-estate investment trust, which invests in properties
such as casino resorts, raised $1.05 billion in its initial public
offering and sold 50 million shares.
Shares trade on the New York Stock Exchange under the symbol
"MGP."
It was the first offering by a U.S.-listed company to raise more
than $1 billion since First Data Corp. raised $2.8 billion in
October, according to Dealogic.
The REIT was spun out of hotel operator MGM Resorts
International, and the REIT will include 10 MGM properties,
including resorts in Las Vegas, according to a regulatory filing.
MGM Resorts will remain a majority owner.
The company had planned to sell 50 million shares between $18
and $21 apiece, according to regulatory filings.
MGM Growth Properties is one of a trio of companies expected to
make their stock-market debuts this week, after Bats Global Markets
Inc.'s success during a slump in new offerings.
Bats's IPO last week followed the slowest quarter for U.S. IPOs
since 2009.
Analysts say they want to see a steady flow of deals that price
within or above expectations and go on to trade higher than their
opening price before confidence in the IPO market is restored.
Also set for later this week is the offering of
dialysis-services provider American Renal Associates Holdings Inc.
and cybersecurity company SecureWorks Corp., the first
technology-company IPO since December, people familiar with the
offerings said.
Write to Corrie Driebusch at corrie.driebusch@wsj.com
(END) Dow Jones Newswires
April 20, 2016 10:35 ET (14:35 GMT)
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