NEW YORK (MarketWatch) -- CapitalSource Healthcare REIT on Monday said it plans to offer 14 million shares at a price of $18-$21 a share in a bid to raise about $273 million in its upcoming initial public offering.The company plans to trade on the New York Stock Exchange under the symbol CHR The Westlake Village, Calif.-based unit of CapitalSource Inc. (CSE:CSE
Individual shareholders don't get anything directly, but unless they issue more stock, the value of each share should go up commensurately. Also, CSE will keep the majority interest, so half the profits from the REIT go to CSE. More or less.
Have you checked the market for healthcare REITs? it happens that that market is doing just fine. It is not at its historical highs which was only a few weeks ago, but it is a pretty good market compared to everything else. Therefore, instead of viewing the IPO as an act of desperation, I view it as a pretty smart move.
As we know, Delaney is not shy about selling shares when he makes his mind up. Remember the 34mm share CSE secondary at $11.00, days after the stock had been trading near $15. One could say his aggressive selling of equity has saved the company from the kind of fate other financials are suffering.