Empire State Realty Trust will plan an initial public offering of the company’s stock at between $13 and $15 per share, officials for the proposed real estate investment trust said. The REIT said in a regulatory filing that it is selling 71.5 million shares and will offer underwriters a chance to buy 10.7 million additional shares to meet excess demand.
The filing came a day after the company that controls the Empire State Building – led by Malkin Holdings — won the necessary investor votes to move forward with the process of taking the iconic tower and 18 other properties public.
At the midpoint price of $14 per share – and assuming the underwriters avail of the additional shares – the REIT would raise gross proceeds of $1.15 billion, Crain’s reported. The company intends to use IPO proceeds to repay debt and cover IPO-related expenses, as well as for working capital and future acquisitions, according to Crain’s.