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MGM Growth Properties debuts, raises more than $1B in IPO

MGM Growth Properties raised $1.05 billion in its initial public offering Wednesday.

The real estate investment trust priced 50 million shares at $21 per share, at the high end of its target range. It offered underwriters the option to buy up to 7.5 million additional shares.

Shares jumped 4.8 per cent to close at $22.01. Its stock is trading under the ticker symbol “MGP” on the New York Stock Exchange.

The warm reception could be a sign the IPO market is improving. The first quarter of 2016 was the worst period for IPOs since the depths of the financial crisis, according research firm Renaissance Capital. Only 11 IPOs have priced this year, down 74 per cent from last year.

But Renaissance says there is a backlog of companies waiting to file.

MGM Growth Properties, which had been a subsidiary of MGM Resorts International, is based in Las Vegas. It invests in casinos and resorts.