Armada Hoffler Properties Inc, the US real estate company, has filed with regulators to raise nearly US$201.3 million in an initial public offering. The company develops and manages properties located in the Mid-Atlantic United States.
The company would modify its structure into a real estate investment trust fund after the completion of the IPO. The plan is to list the shares at the New York Stock Exchange using the symbol 'AHH'. Baird has been appointed as underwriter to the IPO.
Many property firms holding large real estate assets are pursuing a REIT structure as the tax burden is reduced on their rental income. The stockholders of the firms also earn as REITs are mandated to distribute about ninety percent of profits as stock dividends.
The documents did not reveal the number of shares that the REIT is planning to sell or their share per price. It has been advised that the amount of money planned to be raised at its IPO would be used for registration fees calculated. The IPO fund amount would be different.
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