NEW YORK CITY-Empire State Realty Trust began trading on the New York Stock Exchange Wednesday morning under the symbol ESRT, following the SEC's approval of its offering plan. The IPO of 71.5 million shares went for $13 per share, raising $929.5 million on Tuesday, according to the New York Times. The newly public REIT has granted underwriters an option to buy up to 10.725 million shares at the same price.
The IPO comes after Peter Malkin and Anthony Malkin, Malkin Holdings' chairman and president, respectively, sought for nearly two years to take the Empire State Building and other office properties they supervise public. In recent months, a variety of offers came in to buy the iconic office tower at 350 Fifth Ave., but the Malkins ended up rejecting the bids.
Net proceeds of the IPO are expected to be $754.4 million, not including any exercise of the underwriters' over-allotment option. ESRT says it plans to use the proceeds to fund certain formation transaction costs and fees and make cash payments to holders of interests in the existing entities that own the properties, including the Helmsley estate. Goldman, Sachs & Co. and BofA Merrill Lynch acted as joint book-running managers for the offering.
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