Taylor Morrison could raise about $504M in IPO
Homebuilder Taylor Morrison could raise about $504M in initial public offering of stock
NEW YORK (AP) -- Taylor Morrison Home Corp. could raise about $504 million in its initial public offering of stock, the latest real estate-related deal as the housing market recovers.
The homebuilder, which is based in Scottsdale, Ariz., expects to sell 23.8 million shares for between $20 and $22 each. The banks managing the deal may buy another 3.6 million shares, adding to the proceeds.
Taylor Morrison, which operates its namesake brand and Darling Homes in the U.S. and the Monarch brand in Canada, booked $1.44 billion in revenue last year and closed on 4,014 homes. The company sells homes ranging from $120,000 to more than $1 million, targeting first- and second-time buyers.
Taylor Morrison's IPO follows that of homebuilder TRI Pointe Homes Inc. in January, real estate investor Silver Bay Realty Trust Corp. in December and real estate services provider Realogy Holdings Inc. in October.
Recent data have shown a strengthening housing market. Job gains and mortgage rates near record lows have helped lift home sales, more than six years after the housing market began to collapse. Home construction in February rose to its highest level in more than four years, and U.S. homebuilders requested permits for future construction at the fastest pace in 4 1/2 years
The company said in its filing with the Securities and Exchange Commission that after the IPO it plans to raise up to an additional $500 million of debt for general corporate purposes.
The company's stock is expected to trade on the New York Stock Exchange under the "TMHC" ticker symbol.
