Salt Lake-based Extra Space Storage Inc. began trading on the New York Stock Exchange Thursday at a starting stock price of $12.50 per share, after an initial public offering valued at $252.5 million.
After a few ascents early in the day, the company's stock ended its first day exactly where it started: $12.50 per share.
Extra Space, a real estate investment trust that operates professionally managed storage properties, launched its initial public offering with 20.2 million shares, with an estimated price of $13 to $15 per share. It trades under the symbol EXR.
The $252.5 million valuation does not include deductions for underwriting discounts, commissions and expenses. If needed, the company has given the underwriters an option to buy another 3.03 million shares to cover over-allotments.
Thursday's opening price of $12.50 per share was below the estimated per-share price range. But James Overturf, Extra Space Storage's vice president of marketing, said the company is "satisfied" with the pricing, calling it "mutually beneficial for new and future shareholders alike."
"We're satisfied with the pricing, especially given the current market environment," Overturf said.
In a story posted Thursday, Briefing.com stated that "in general, the IPO market is slowing right along with weakness in the overall stock market. Seven IPOs are being withdrawn or have been postponed in the last week. Also, more than half the deals this quarter have come in at or below the low end of the expected range."
Given those conditions, Overturf said, "I think it's a nice first day for us, and it's nice to see the volume of trading that we're seeing. Right now, we're happy to be a public company, and we look forward to moving forward and executing our business plans."
Extra Space filed for its IPO on May 13. In an amended filing earlier this month, the company said it intends to use the net proceeds from the IPO together with variable rate mortgages to buy properties, repay existing debt and pay for loan exit fees.
Headquartered in Salt Lake City, Extra Space also has regional offices in California, Florida, Massachusetts, New Jersey, New York and Chicago.
E-mail: jnii@desnews.com