March 16 (Reuters) – Janus Living is targeting a valuation of up to $5 billion in its U.S. initial public offering, the senior housing real estate investment trust said on Monday, as the market for first-time share sales remains attractive despite volatility.
The company, which is being carved out from healthcare REIT Healthpeak Properties, is seeking up to $740 million by offering 37 million shares priced between $18 and $20 apiece.
U.S. IPO activity has slowed to a crawl in recent weeks as market turbulence from the ongoing Middle East conflict continues to rattle investors and keep corporate issuers on the sidelines.
But some companies are still going ahead with the launch of their IPO roadshows. Tungsten mining company Guardian Metal Resources on Monday also unveiled terms for its planned U.S. listing.
Denver, Colorado-based Janus owns 34 senior housing communities located mainly in major retirement markets across 10 U.S. states. Florida and Texas make up roughly 69% of the portfolio.
Demand for senior housing in the United States is rising as aging demographics drives the elderly population to hedge against future care needs.
Janus-parent Healthpeak Properties had earlier this year announced it carved out its senior housing portfolio into a separate publicly traded REIT to unlock its value.
Cornerstone investors including CenterSquare Investment Management, DWS Group, MFS Investment Management, and PGIM have indicated interest in buying up to $300 million worth of Janus shares from the offering.
BofA Securities and J.P.Morgan are the lead book-running managers for the offering. Janus Living will list on the New York Stock Exchange under the symbol “JAN”.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Krishna Chandra Eluri)
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