(Reuters) - 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 .DJUHSB has gained about 86 percent in the past year, outperforming the wider S&P 500 index .SPX that gained 14 percent.
Shares of Tri Pointe Homes LLC (TPH.N), 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 (BCC.N) 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.
Reporting by Tanya Agrawal in Bangalore; Editing by Maju Samuel