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Highlights
- First Spring Capital Trust is an internally managed REIT.
- First Spring Capital is set to debut on NYSE Thursday under the ticker symbol FSPR.
- The New Jersey-based company plans to raise US$252 million from the offering.
Four Springs Capital Trust (FSPR) is set to debut on New York Stock Exchange (NYSE) Thursday under the ticker symbol FSPR.
The Lake Como, New Jersey-based company has set the IPO price range at US$13.00 to US$15.00. It will raise around US$252 million in the mid-price range.
The company is offering 18,000,000 common shares in the IPO. An additional 2,700,000 shares are reserved for underwriters at the offering price in case of overallotment.
Four Springs Capital hopes to offer a 3.5%-yield at the midpoint.
After the offer, it will have 41,165,143 outstanding common shares; and if the underwriters exercise their purchase option in full, it will have 43,865,143 common shares.
Also Read: Seven hottest IPOs to explore in 2022
The company plans to use the proceeds, estimated at US$231.4 million to US$266.7 million, to consummate pending acquisitions and repayment of M&T credit facility and Mezzanine loan outstanding. The balance will be used for general corporate purposes.
Its joint book-running managers are Morgan Stanley, Goldman Sachs & Co. LLC, and Wells Fargo Securities. The book-runners are Mizuho Securities, Scotiabank, Wolfe, Nomura Alliance, and Berenberg. R. Seelaus & Co., LLC is the co-manager for the offering.
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About Company
First Spring Capital is an internally managed REIT. It acquires, owns, and manages a portfolio of single-tenant properties in the US for medical, industrial, retail, and office purposes.
The company has ownership rights in 156 properties, with a 99.8% occupancy rate, in 32 states as of December 15, 2021. These were leased to out 68 tenants from 37 different industries.
It had 21 employees as of December 15, 2021.
Also Read: These 2 NYSE basic industry stocks returned over 200% in a year
Financials
For the nine months ended September 30, 2021, its revenue was US$38.97 million compared to US$25.96 million in the corresponding period a year ago.
It booked a net loss of US$21.0 million or US$US$3.24 per share diluted compared to a net loss of US$15.58 million or US$8.37 per share diluted in the same period of 2020.
Also Read: 5 best US hospital stocks for 2022
Bottomline
After a record year for IPOs in 2021, the market has cooled down lately. Analysts expect the IPO market to heat up in the second half of 2022 when the rate scenario and the Omicron crisis would be clearer. Investors, however, should exercise due diligence before investing in stocks.
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Versha Jain - Financial Journalist696 PostsVersha is a post-graduate in finance and has vast experience in the retail banking and education sectors. She also holds a keen interest in development work. At Kalkine, she writes on stock markets, companies, equities, and IPOs, etc....
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Sanjeeb Baruah - Financial Journalist368 PostsSanjeeb is a senior journalist who has been in the media for nearly two decades. He wrote on various topics, from politics, international relations, business to wildlife. At Kalkine, he writes on stock markets, companies, equities, and IPOs, etc....
