GO Residential Real Estate Investment Trust (REIT) shares declined as much as 3.3% in early trading Friday following its $410 million initial public offering, the first corporate IPO on the Toronto Stock Exchange (TSX) in 2025.
Despite the early dip, the offering marks a notable reopening of Canada’s IPO market, which has remained largely quiet since late 2024.
Shares of the New York-based real estate investment vehicle were priced at $15 each but were trading at $14.50 as of 9:44 a.m. in Toronto, a modest slip below the IPO price.
The offering involved 27.34 million units and was led by Canadian Imperial Bank of Commerce and Bank of Montreal.
The REIT is now trading under the ticker symbol GO.U on the TSX.
First major IPO of 2025 on TSX
GO Residential’s listing is the first corporate IPO on the TSX this year and the first deal to raise more than $50 million since Groupe Dynamite Inc.’s $215 million offering in November 2024.
It signals a potential revival in Canadian capital markets after a long lull in IPO activity.
The offering was reportedly significantly oversubscribed, reported Bloomberg News, with the majority of allocations going to long-only institutional investors, reflecting strong demand despite broader market caution.
In a private placement connected to the IPO, funds managed by Cohen & Steers Capital Management Inc. agreed to purchase 6 million units at the offering price, contributing an additional $90 million in proceeds.
This move provides further validation of institutional confidence in GO Residential’s portfolio and strategy.
Focus on high-end new york residential properties
GO Residential REIT will indirectly own a portfolio of luxury high-rise apartment buildings in New York City.
According to its prospectus, proceeds from the IPO will be used to acquire these properties.
The REIT is targeting a stable income stream through premium rental assets in one of the world’s most competitive real estate markets.
The company plans to pay monthly cash distributions that equate to an annual yield of approximately 4.26%.
The first distribution is scheduled for September 15, according to the statement.
Meyer Orbach, chairman of GO Residential, is also a part-owner of the NBA’s Minnesota Timberwolves.
Chief Executive Officer Joshua Gotlib previously led Manhattan-based real estate firm Black Spruce LLC, bringing deep experience in the New York property market to the REIT’s leadership team.
In addition to CIBC and BMO, the IPO syndicate included several major North American banks and investment firms: Bank of America Corp., Royal Bank of Canada, National Bank of Canada, Bank of Nova Scotia, Desjardins Capital Markets, Canaccord Genuity Corp., and BTIG.
Though the REIT’s debut was marked by a slight pullback in its trading price, the strength of the offering, high investor interest, and scale of the deal mark a positive step for Canadian equity markets.
Investors will now be watching how GO Residential performs in the public markets and how effectively it deploys its capital in the competitive New York real estate landscape.
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