AP, New York - Shares of Apollo Commercial Real Estate Finance Inc. fell more than 5 percent in midday trading on the stock’s debut in an initial public offering Thursday.
The real estate investment trust and its underwriters set the IPO price at $20 a share. By midday, the shares lost $1.14, or 5.7 percent, to $18.86. They traded as high as $19.20 earlier.
Apollo offered 10 million shares — down from a projection of 20 million shares made earlier this month, also priced at $20 apiece — that were trading on the New York Stock Exchange under the ticker symbol ”ARI.” Apollo also is completing a private placement of another 500,000 shares of common stock to Apollo and certain affiliates, at $20 per share.
After expenses, the public offering and private placement are expected to raise a total $208 million in capital for investments in the battered commercial real estate market.
New York-based Apollo granted underwriters a 30-day option to buy an additional 1.5 million shares of common stock to cover any over-allotments.
J.P. Morgan Securities Inc., Citigroup Global Markets Inc. and Barclays Capital Inc. are acting as joint book running managers of the public offering. Wells Fargo Securities, LLC, Raymond James & Associates, Inc., RBC Capital Markets Corporation and Stifel, Nicolaus & Co. are acting as co-managers.
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