--Taylor Morrison Home sets terms, date for IPO
--Arizona-based company will be the second builder to launch an
IPO this year.
--Shares slated to list April 10
(Updates throughout with context, date for the IPO)
By Chris Dieterich
NEW YORK--Investors looking for ways to play a recovery in
housing will get a new option next week.
Home builder Taylor Morrison Home Corp. said Monday its initial
public offering will begin trading next Wednesday. The Scottsdale,
Ariz., company plans to sell 23.8 million Class A shares for a
between $20 and $22, a deal that would be worth as much $524
million, according to an updated regulatory document filed with the
Securities and Exchange Commission.
With home prices, sales and construction all trending higher,
new stock flotations tied to the housing market have been in strong
demand. Shares of TRI Pointe Homes LLC (TPH)--the first builder to
launch an IPO since 2004--have climbed more than 20% since their
late-January debut. Building-materials company Boise Cascade Co.
(BCC) is up more than 50% since its February debut.
Shares of Taylor Morrison, which builds single-family homes and
planned communities, are set to start trading April 10 on the New
York Stock Exchange under the ticker TMHC.
For 2012, Taylor Morrison generated $1.4 billion in revenue as
sales and orders jumped 46% from the year earlier. It closed on
4,014 home sales--three-quarters of which were in the U.S. The bulk
of its sales come from so-called "first-move" homes, or homes
bought by existing homeowners looking for an upgrade.
Taylor Morrison is backed by private-equity firms TPG Global
LLC, Oaktree Capital Management L.P. and JH Investments Inc., which
bought the company from U.K. builder Taylor Wimpey PLC (TWODY,
TW.TN) in 2011 for $1.2 billion in cash.
Credit Suisse Group AG (CS) and Citigroup Inc. (C) are serving
as Taylor Morrison's lead underwriters.
Write to Chris Dieterich at
christopher.dieterich@dowjones.com;
Melodie Warner contributed to this article.
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