(Reuters) – FrontView REIT Inc, which invests in properties in prominent locations facing high-traffic roads, raised $250.8 million in its U.S. initial public offering (IPO) on Tuesday, valuing the company at about $508 million.
The Dallas, Texas-based company – which has a portfolio of 278 properties across the United States with a 98.9% occupancy rate, as of June-end – priced its offering of 13.2 million shares at $19 apiece, the midpoint of its indicated range.
The company’s shares will be listed on the New York Stock Exchange under the symbol “FVR”, and start trading on Wednesday.
Proceeds from the IPO will be mainly used to pay down debt for FrontView, which counts wireless carrier Verizon, pharmacy chain CVS, automotive dealer Adams Auto Group, Wall Street giant Bank of America and fast-food restaurant chain Wendy’s among its major clients.
Founded in 2016 by Stephen Preston, the company reported a 34% year-on-year jump in rental revenue to $29.9 million in the six-month period ended June 30.
Morgan Stanley, J.P. Morgan, Wells Fargo Securities, and BofA Securities are the joint book-runners for the offering.
(Reporting by Gursimran Kaur in Bengaluru; Editing by Sherry Jacob-Phillips)