Minto Apartment Real Estate Investment Trust is adding to the roster of property companies tapping Canadian equity markets this year, raising $200-million in its initial public offering, according to people familiar with the matter.
The Ottawa-based company priced its shares at $14.50 each, the high end of its marketed $12.50 to $14.50 range, said the people who asked not to be identified because the information is private. A representative for Minto wasn’t immediately available for comment.
The company is expected to trade on the Toronto Stock Exchange under the symbol MLUN, according to a regulatory filing. Toronto-Dominion Bank and Bank of Montreal led the share sale, the filing shows.
While home sales in Canada have cooled this year, the rental market is heating up, especially in Toronto where the economy has boomed and immigration has been strong.
The threat of rising interest rates hasn’t deterred several REITs from tapping equity markets this year. More than $1-billion was raised in Canada in the sector through June 20, slightly less than the $1.2-billion raised during the same period in 2017, according to data compiled by Bloomberg.
In April, BSR Real Estate Investment Trust raised $135-million in its own Toronto listing. That was followed a $175-million secondary sale by Dream Global REIT and a $260-million equity raise by Allied Properties REIT this month.
Minto, established in 1955, specializes in home building, construction, property and investment management in Canada and the southern U.S., according to its website. It has built more than 85,000 new homes, manages 13,000 multi-residential units and owns 2.7 million square feet of commercial space. Its investment management portfolio has C$2.9 billion in assets.