Jan 29 (Reuters) - Tri Pointe Homes LLC raised the size of its initial public offering by 17 percent, a day before the homebuilder’s IPO is scheduled to price, hoping that a recovering U.S. housing market would generate interest for its shares.
Tri Pointe will now sell 13.7 million shares in the IPO, more than the 11 million shares it was initially planning to offer, the company said in a regulatory filing.
The company still expects to price the shares at between $14 and $16 each, a price range it set earlier this month.
All the additional shares are being sold by the company’s majority shareholder and chairman Barry Sternlicht. Following the offering, Sternlicht will retain a 45.4 percent ownership in Tri Pointe, according to the filing.
Sternlicht is also chief executive of private equity firm Starwood Capital Group, a fund that invested $150 million in Tri Pointe in 2010.
The company will be renamed Tri Pointe Homes Inc on completion of the offering, and is scheduled to start trading on the New York Stock Exchange on Thursday under the symbol “TPH”.
Citigroup, Deutsche Bank Securities and FBR are the lead underwriters for the offering.