The HealthCo Healthcare & Wellness REIT Units (ASX: HCW) share price has had a solid start to its time on the ASX.
Healthco Healthcare & Wellness (HCW) is a real estate investment trust (REIT).
Since it listed on Monday, the company’s stock has gained 4.54%. It is also currently 15% higher than its prospectus‘ offer price of $2 per share.
Right now, the HealthCo REIT (HCW) share price is $2.30, up 0.88% on its previous closing price.
Let’s take a look at the ASX’s newest REIT’s Initial Public Offering (IPO).
HCW share price soars on IPO
What is HCW?
HCW is a REIT focused on healthcare and wellness assets.
It plans to keep a portfolio consisting of hospitals and facilities for aged care, childcare, government, life sciences and research, and primary care and wellness.
Nearly all of the company’s 27 properties are located in Australia’s eastern states, with one in Western Australia. Its assets have an occupancy rate of 96% and a weighted average lease expiry of 9.4 years.
Additionally, the company believes its portfolio has exposure to Australia’s upcoming megatrends, such as an ageing population, healthcare sector growth, and greater use of wellness services.
HCW states its portfolio is valued at $555 million.
The funds raised through its listing will go towards increasing its portfolio through acquisitions. They will also fund the remaining expenses related to 4 properties the company is developing.
The HCW share price has been performing exceptionally well since it debuted on the ASX on Monday.
The company’s prospectus’ offer included 325 million new shares, giving HCW an expected market capitalisation of $650 million.
HCW’s shares began trading on the ASX at 11am Monday morning, opening at $2.20 and finishing their first day at $2.29.
So far, the HCW share price’s record high is $2.39.
At its current share price, HCW has a market capitalisation of $741 million.