Dec 21 (Reuters) - Tri Ponte Homes LLC filed to raise up to $172.5 million in an initial public offering of its common stock as the homebuilder looked to go public amid a recovery in the housing market.
The housing market in the United States has improved this year as record low interest rates and rising rents pushed consumers to buy homes. Economists expect residential construction to add to economic growth this year for the first time since 2005.
The company, which was founded in 2009 and focuses on communities in Southern and Northern California, listed Citigroup, Deutsche Bank Securities and FBR as underwriters to the IPO.
Homebuilder KB Home said in its earnings report on Thursday that it was seeing improvement in demand in California, where foreclosures had previously kept recovery at bay.
Earlier this month, Taylor Morrison Home Corp filed for an IPO of up to $250 million, and said it was on track to become the sixth-largest listed homebuilder in North America after the offering.
Tri Ponte, which said it would use proceeds from the offering primarily to acquire land, intends to list its stock on the New York Stock Exchange under the symbol “TPH”.
Its operations include 13 communities containing 695 lots under development, Tri Ponte said in a filing with the U.S. Securities and Exchange Commission on Friday. ()
The filing did not reveal how many shares the company planned to sell or their expected price.
The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.