Ottawa-based Minto Group’s real estate investment trust followed up a strong first day on the public markets with another solid performance Wednesday, finishing afternoon trading on the Toronto Stock Exchange up more than 10 per cent from its TSX debut.
The Minto REIT (TSX:MI.UN), which consists of 22 apartment buildings spun off from Minto Properties’ multi-residential portfolio, raised $200 million in its debut with 13,794,000 trust units priced at $14.50 each. That price rose more than 10 per cent to $16.05 at the day’s peak before settling back down to $15.77 on Tuesday, an increase of roughly nine per cent from its debut.
On Wednesday, the REIT's stock closed at $16, for a gain of nearly 1.5 per cent on the day.
The IPO contains an over-allotment option that, if exercised by the underwriters in the next 30 days, would see the REIT raise an additional $30 million.
Funds raised from the offering will primarily finance the REIT’s property expansions. A prospectus filed before the offering claimed the new REIT will be “well-positioned” to capitalize on Canada’s growing rental housing market.
As it stands, Minto Properties retains approximately 62 per cent ownership of the REIT, though that would drop to roughly 57 per cent if the over-allotment option is exercised.