Hudson Pacific Properties shares rise after IPO priced low, raising $217.6 million

Hudson Pacific Properties shares rise in debut

NEW YORK — Shares of real estate company Hudson Pacific Properties rose in their trading debut Thursday after pricing at the bottom of the expected price range.

The company, which intends to operate as a real estate investment trust, raised $217.6 million Wednesday night. It will raise another $20 million in a private share sale.

Hudson Pacific Properties was formed last year in Los Angeles, owns and operates office properties in Northern and Southern California. It plans to operate as a real estate investment trust this year, which means investors receive a dividend of at least 90 percent of net taxable income.

It priced 12.8 million shares at $17, the bottom of the expected range, and will raise another $20 million in a private share sale.

Pricing low generally suggests weak demand, but investors have been pushing for lower initial pricing this year in a volatile stock market.

The shares, trading on the New York Stock Exchange under the symbol “HPP,” rose 29 cents, or 1.7 percent, to $17.29.

Underwriters led by BofA Merrill Lynch, Barclays Capital and Morgan Stanley can buy another 1.9 million shares at the IPO price to cover excess demand.

The company’s CEO, Victor Coleman, and investment management firm Farallon Capital Management LLC plan to buy another $20 million in common stock in a private placement.

Net proceeds from the offering and private sale will be about $210.5 million after expenses, the company said. Hudson Pacific will use the funds to repay debt, acquire property and for general purposes.