NEW YORK (AP) -- Shares of American Homes 4 Rent edged higher Thursday after the real estate investment trust said its initial public offering priced at $705.9 million, or $16 per share.
The company sold 44.1 million Class A shares and its IPO priced at the low end of its expectations on Wednesday. Its shares are now trading on the New York Stock Exchange under the ticker symbol "AMH," and they rose 9 cents to $16.09 in morning trading.
American Homes 4 Rent is based in Agoura Hills, Calif., and it acquires, renovates and leases residential homes. It had expected the shares to start at $16 to $18 per share.
The company said the underwriters of its IPO will have the option to buy 6.6 million more shares to cover any overallotments. It is selling an additional $75 million in shares through private placements. It said $50 million shares are being bought by American Homes 4 Rent LLC, a company formed by founder and Chairman B. Wayne Hughes. Alaska Permanent Fund will buy $25 million in stock. Both firms will pay $16 per share
American Homes 4 Rent said it expects a total of $743.9 million in net proceeds from the IPO and private placements after expenses.
The IPO and the private offerings are expected to close Tuesday.