BENGALURU: 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 new listings market 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.
“The sorts of businesses that may still be able to list in this market are non-technology aligned companies with recurring revenue streams that can offset the short-term impact of higher energy prices and lower consumer affordability,” said Samuel Kerr, global head of equity capital markets at Mergermarket.
“It (Janus) will also benefit from being a REIT, which tends to have a dedicated pool of investors that are less concerned with the day-to-day fluctuations of global markets and are more concerned with real estate economics and the idiosyncrasies of the asset they are buying.”
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 U.S. is rising as aging demographics drives the elderly population to hedge against future care needs.
Cornerstone investors 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. Janus Living will list on the NYSE under the symbol “JAN”.
