(Bloomberg) -- Apartment owner Dream Residential Real Estate Investment Trust fell 9% on its first day of trading in Canada as it launched into an extremely volatile equity market. 

The Toronto-based company, which raised $125 million in the initial public offering, will manage more than 3,400 units in the U.S. Midwest and sunbelt states and may add more through acquisitions. It’s taking advantage of a relatively strong market for apartments: In February, a measure of U.S. rents posted the largest monthly increase in more than 30 years. 

“The first day isn’t the best but I think you’ll see a lot of great things happen soon,” said Michael Cooper, founder of Dream Unlimited Corp., which will help manage the REIT. The shares closed at $11.80 on Friday; the issue price was $13. 

“With interest rates going up and inflation going up it’s going to be expensive to own a house, so we think the dynamics are fantastic. And just give us a couple quarters to report on what we’re doing, I think it will be very exciting for investors,” Cooper said in an interview on BNN Bloomberg Television. 

Brutal Stock Selloff Is a Multitude of Bear Cases Coming True

Dream Residential was the first corporate IPO of more than C$150 million ($116 million) to trade on a Canadian exchange this year. In 2021, there were 17 deals of at least that size in Canada, excluding closed-end funds, with two raising over C$1 billion, according to Bloomberg data. 

Last year was a record year for IPOs in Canada, with firms undertaking 173 deals with a total value of C$11.9 billion. But rising interest rates, Russia’s war in Ukraine and Covid-19 lockdowns in China have contributed to a selloff in equities, sapping demand for new listings, according to Peter Miller, head of equity capital markets for BMO Capital Markets. 

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