The share price of data center builder and provider CoreSite was up about 1.9 percent around four hours after opening of their first day of trading on the New York Stock Exchange.
The company priced its initial public offering of 16.9m shares at $16 per share and began trading under the symbol COR on Thursday morning. Its stock traded at $16.30 about four hours after the market opened, following closely a trade at $16.36.
The company said in a statement it would use proceeds from the offering ÔÇô expected to close on 26 September ÔÇô to buy assets from an operating partnership and real estate funds that are affiliated with its parent company Carlyle Group that are contributing properties to the operating partnership.
The partnership, in turn, will invest in redevelopment and development of data centers, to repay debt and for other unspecified corporate purposes.
Underwriters of the IPO have a 30-day option to buy up to about 2.5m shares more at the IPO price minus underwriting discounts and commissions.
Citi, Bank of America Merrill Lynch and RBC Capital Markets acted as book-running managers for the IPO and KeyBanc Capital Markets and Credit Suisse Securities played the role of lead managers.