October 22, 2015

Months after the internally managed farmland real estate company, American Farmland Company, filed a registration for a $100 million initial public offering (IPO), the firm has scaled back the proposed size of the offering.

The New York-based firm had originally filed for an offering of 12 million shares priced between $8.50 and $10.50, however, now plans on raising $48 million through the offering of 6 million shares at a per share price of $8. Considering the revised plan, it is estimated that the company will raise 58% less than originally planned. The company has also granted its underwriters a 30-day option to buy up to an additional 900,000 shares of common stock at the initial offering price.

Founded in October 2009, American Farmland Company owns a diversified portfolio of farmland assets consisting of 23 varieties of permanent crops, commodity row crops, and vegetable and specialty crops totaling 16,136 acres across six states, in addition to farmland development projects.

Bookrunners for the offering include Deutsche Bank Securities, Citigroup, Raymond James, RBC Capital Markets and FBR, and Janney Montgomery Scott, Oppenheimer & Co. and Wunderlich are acting as co-manager.

American Farmland plans to use the funds raised through this float to pay down $25 million of its outstanding debt and for general corporate and working capital needs, including funding capital expenditures associated with its existing farming properties.