Real estate investment trust American Homes 4 Rent said it expects its initial public offering of common shares to be priced between $16 and $18 per share, raising as much as $793 million.
American Homes is among a host of home builders and REITs looking to go public by taking advantage of an upswing in the housing market.
The company, which plans to sell 44.1 million common shares, owns 14,210 single-family homes as of April 30 and had an additional 1,425 properties in escrow that it expects to acquire, it said in a filing. (link.reuters.com/qan79t)
The company is also looking to buy foreclosed homes and rent them out to take advantage of rising rents in a recovering U.S. housing market.
Large institutional investors such as American Homes 4 Rent, private equity firm Blackstone Group (BX.N) and real estate firm Colony Capital will spend up to $10 billion over the next two years to buy distressed single family homes, housing analysts have estimated.
California-based American Homes started operations in November to continue investing for AH LLC, which was founded by the company's chairman and founder Wayne Hughes. Hughes was also the founder and former chief executive of real estate investment trust Public Storage (PSA.N).
The company expects to use the proceeds of the offering to repay debt and acquire new single-family properties.
American Homes 4 Rent intends to list its Class A common stock on the New York Stock Exchange under the symbol "AMH".
Goldman Sachs, BofA Merrill Lynch, JP Morgan and Wells Fargo Securities are among the lead bookrunners for the IPO.
(Reporting By Varun Aggarwal in Bangalore; Editing by Anil D'Silva)