Newly-formed mortgage real estate investment trust (REIT) Tremont Mortgage Trust, controlled by RBR Group, is hoping to raise $90 million in an initial public offering this week, the company has said. The Tremont Mortgage IPO comes amid what is shaping up to be a strong year for public floats.
Tremont Mortgage Trust disclosed in a recent filing to the US Securities and Exchange Commission that it is hoping to sell 4.5 million shares, priced at $20 million each. The REIT will list on the Nasdaq where shares will trade under the ticker symbol ‘TRMT’. RMR Group plans to purchase shares in a concurrent private placement. Assuming it purchases the minimum commitment, the group would own a 10-percent stake, while Tremont would command a market value of $100 million.
UBS Investment Bank, Citigroup and RBC Capital Markets are the joint bookrunners on the upcoming IPO which is expected to price on Wednesday, Renaissance Capital reports.
Tremont Mortgage was formed as a real estate finance company planning to focus primarily on originating and investing in first mortgage loans secured by middle market and transitional commercial real estate.
The new IPO comes with the last quarter of the year set to be a busy one for public floats, with the IPO calendar including Alibaba-backed Best Logistics and video streaming platform Roku.
“As long as overall markets remain relatively constructive and transactions continue to be executed well, we continue to expect healthy volumes over the rest of the year,” David Ludwig, head of Americas equity capital markets at Goldman Sachs, told the Financial Times yesterday. The newspaper further quoted data by Dealogic as showing that 112 IPOs have priced in the year-to-date, versus just 63 at this time last year, with two-thirds of this year’s deals trading above their issue price.