Silver Bay Realty Trust Corp. (which will trade on the NYSE under the ticker "SBY") went public today, celebrating by ringing the NYSE opening bell. The company announced that 13.25 million shares debuted on the markets at $18.50 apiece, bringing the value of the IPO to more than $245 million.
The newly formed Maryland corporation will specialize in buying, renting, and selling single-family properties and will own more than 3,100 such properties across the U.S. as a result of the IPO.
The publicly traded REIT Two Harbors Investment Corp. (NYSE: TWO ) and the private Provident Real Estate Advisors LLC will provide Silver Bay's initial portfolio of properties in exchange for an equity interest in the new company or cash. Silver Bay intends to structure itself as a real estate investment trust for tax purposes.
As of June 30, Silver Bay had no assets; investors can be sure things will look very different at the end of the day today. The company will own property in some of the states where real estate has been hit the hardest, like Arizona, California, Florida, and Nevada, as well as other states.
Shares priced at the lower end of the $18-$20 IPO range previously announced by the company, and at last check were trading slightly below the $18.50 open.