July 15 (Reuters) - WCI Communities Inc said it expects to raise as much as $222.4 million from its initial public offering as the luxury home builder plans to tap into the rising demand for new homes.
The company said it expects its IPO of 8.4 million shares to be priced between $21 and $23 per share, valuing the company at as much as $600 million.
Florida-based WCI said its preliminary estimates showed a 170 percent rise in revenue from delivery of new homes to about $53.8 million for the three months ended June 30, signaling robust demand.
Sales of newly built, single-family homes rose for a third consecutive month in May, posting a 2.1 percent gain to a seasonally adjusted annual rate of 476,000 units, according to data released by department of housing and urban development and the U.S. Census Bureau on June 25.
This has given a big boost to the stocks of several homebuilders including companies that went public in May such as Tri Pointe Homes Inc and William Lyon Homes.
WCI, which counts Monarch Alternative Capital LP and Stonehill Institutional Partners LP among its stockholders, expects to use the proceeds from the offering for the acquisition and development of land, home construction and for investment purposes.
The company intends to list its common stock on the New York Stock Exchange under the symbol "WCIC." ()
WCI Communities listed Citigroup, Credit Suisse and J.P. Morgan as lead underwriters to its offering.