Homebuilder UCP sets IPO price range at $15-$17/shares
(Reuters) - Homebuilder UCP Inc said it expects a price range of between $15 and $17 per share for its initial public offering of 7.8 million shares.
The California-based company, which is selling Class A common shares in the offering, will raise $124.8 million at the midpoint of its expected price range.
UCP, acquired by diversified holding company PICO Holdings Inc (PICO.O) in 2008, operates in Northern California and Washington.
The company expects to tap into growing demand for housing. A Standard & Poor's Case-Shiller index report showed that prices of single-family homes in 20 U.S. metropolitan areas jumped 12.1 percent in April, marking the biggest annual gain in seven years.
The stocks of other homebuilders Tri Pointe Homes Inc (TPH.N), William Lyon Homes (WLH.N) and Taylor Morrison Home Corp (TMHC.N) are trading well above their IPO prices.
UCP reported revenue of $11.8 million for the three months ended March 31. It sold 12 homes and 54 lots located in seven communities in California in the period.
The company said its class A common stock has been approved for listing on the New York Stock Exchange under the symbol "UCP".
UCP, which plans to use the proceeds for investment purposes, listed Citigroup, Deutsche Bank and Zelman Partners LLC as lead underwriters to its offering.
(Reporting By Neha Dimri in Bangalore; Editing by Maju Samuel)