Empire State Realty Edges Higher Following IPO

NEW YORK (AP) -- Shares of Empire State Realty Trust gained in Wednesday trading after the company's initial public offering raised about $754 million.

The real estate investment trust owns the Empire State Building and 11 other office properties in New York and Connecticut. It sold 71.5 million shares for $13 per share, which was at the low end of its prior estimate.

Empire State Realty Trust said it raised $754.4 million after expenses, commissions, and discounts.

CEO Anthony Malkin, foreground left, of Empire State Realty Trust, and Chairman Emeritus Peter Malkin, background left, applaud as their company's stock begins trading on the floor of the New York Stock Exchange on Wednesday. AP Photo/Richard Drew.

The stock gained $0. 39, or 3%, to $13.39 by late morning in heavy trading. It listed on the New York Stock Exchange under the ticker symbol "ESRT."

The real estate investment trust will use the proceeds of the IPO to fund transactions fees and pay holders of interests in existing entities, including the Helmsley estate. It had expected the IPO to price between $13 and $15 per share.

The underwriters of the IPO will have an option buy another 10.7 million shares to cover any over-allotments.

Real estate investor Peter Malkin bought the Empire State Building from Donald Trump and a business partner for $57.5 million in 2002. Malkin Holdings, which is run by Peter Malkin and his son Anthony, spearheaded a plan to take Empire State Realty public.

A small group of stakeholders opposed the plan and said they were misled about the proposal, adding that the move would put an unfair tax burden on them. In May, a New York judge backed a $55 million settlement between the Malkins and some of the disgruntled shareholders.

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