American Homes 4 Rent shares drop after IPO

American Homes 4 Rent drops after IPO raises $706M, prices at low end of estimates

Associated Press

NEW YORK (AP) -- Shares of American Homes 4 Rent dropped Thursday after the real estate company's IPO raised $705.9 million.

The company sold 44.1 million shares for $16 each. Its IPO priced at the low end of the expected range of $16 to $18.

Its shares trade on the New York Stock Exchange under the ticker symbol "AMH." They dropped 40 cents, or 2.5 percent, to $15.60 Thursday.

American Homes 4 Rent acquires, renovates and leases residential homes. The real estate investment trust is based in Agoura Hills, Calif.

It expects $743.9 million in proceeds from the offerings after expenses.

The banks managing the IPO could buy an additional 6.6 million shares if there's demand. The company is also selling another $75 million in shares through private placements.

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