* Prices 23.8 mln Class A shares at between $20 and $22/shr
* Looks to raise as much as $524 mln in IPO
April 1 Homebuilder Taylor Morrison Home Corp
plans to raise as much as $524 million in its initial public
offering as it looks to cash in on investor interest in the
recovering U.S. housing market.
The company would be valued at about $2.7 billion at the top
end of the price range of $20 to $22 per share set on Monday.
Scottsdale, Arizona-based Taylor Morrison is offering 23.8
million Class A shares after doubling its IPO size in February.
It will use the proceeds to buy ownership interests in its
direct operating units.
The 75-year-old company, backed by Oaktree Capital
Management, TPG Global and JH Investments Inc, operates under
the Taylor Morrison and Darling Homes brands in the United
States and Monarch brand in Canada.
The IPO comes at a time when record-low mortgage rates and
rising selling prices are driving up housing demand to levels
that large U.S. builders are struggling to meet, creating
opportunities for smaller companies.
The Dow Jones U.S. Home Construction index has
gained about 86 percent in the past year, outperforming the
wider S&P 500 index that gained 14 percent.
Shares of Tri Pointe Homes LLC, which in January
became the first U.S. homebuilder to go public in over a decade,
and those of plywood and lumber maker Boise Cascade Co
surged in their market debuts.
Global equity fundraisings surged 24 percent in the first
quarter from a year ago as strong markets and easing economic
concerns encouraged more companies to raise capital through
initial public offerings and other capital market transactions.
Private equity-backed companies queued up to list shares as
U.S. stock markets reached record highs, helping boost U.S. IPO
volumes by about 65 percent in the first quarter.
Credit Suisse and Citigroup are lead underwriters to the
Taylor Morrison offering. ()