Richmond Honan slashes IPO price but sharply raises shares to be offered

Richmond Honan Medical Properties, a healthcare REIT that will have equity interests in 29 medical office buildings in 10 states upon completion of the IPO, slashed its proposed IPO price by 36% from $14 to $9 per share on Wednesday afternoon. At the same time, the company increased the number of shares to be offered by 44% from 19.5 million to 28 million. As a result, the firm expects to raise $229.9 million in net proceeds, representing $19.5 million less than originally planned. The revised terms give this REIT a market capitalization of $256 million. Lead underwriters Baird, Raymond James and RBC Capital Markets are expected to price the offering on Thursday evening, and the stock is expected to commence trading under the symbol MOB on Friday.