Innovative Industrial Properties became the first marijuana-related company Thursday to trade on the New York Stock Exchange, drawing a lukewarm reception from Wall Street investors.
The cannabis-focused real estate investment trust (REIT) closed down 4.25%. Trading under the ticker symbol IIPR, it finished the day at $19.15 per share, or 85 cents below its initial offering price of $20. The company’s shares briefly touched $20.52 after the opening bell but then dropped throughout the day.
The company, headquartered in San Diego but incorporated in Maryland, buys medical marijuana-related facilities and leases them. It had filed with the NYSE in October to seek a public listing.
Innovative Industrial Properties initially had planned to raise $175 million through its initial public offering, selling 8.75 million shares at $20 per share. But, in a possible sign the company anticipated less-than-robust demand, it reduced the amount to 5 million shares and then 4 million, according to Forbes.
On Thursday, the company announced it was offering 3.35 million shares at $20 per share. Innovative Industrial Properties had planned to float its shares last week, Forbes noted.