Taylor Morrison To Raise $524M In IPO

Taylor Morrison To Raise $524M In IPO

Taylor Morrison Home Corporation will go public by offering 23.8 million Class A shares at $20-$22 per share, according to a regulatory filing. Banks managing the transaction could purchase another 3.6 million shares on the top of the offering. It will be the biggest IPO by an American homebuilder in more than 20 years.

Taylor Morrison Logo

The Scottsdale, Arizona-based company owns Taylor Morrison and Darling Homes brands in the U.S. and Monarch brand in Canada. In 2012, the company earned $430.8 million in profits on revenue of $1.44 billion. Taylor Morrison sold 4,014 homes to first and second time buyers for an average price of $364,000. It sells houses ranging from $120,000 to over a million dollars. After the IPO, Taylor Morrison will be one of the ten largest publicly traded homebuilders in the United States. Taylor Morrison said orders have jumped 71 percent Y-o-Y in the first two months of this year.

Sohn Investment Conference 2021 Coverage: Octahedron Capital, Glenernie Capital

2021 Sohn Investment ConferenceThe following is our rough coverage of the 2021 Sohn Investment Conference, which is being held virtually and features Brad Gerstner, Bill Gurley, Octahedron's Ram Parameswaran, Glenernie's Andrew Nunneley, and Lux's Josh Wolfe. Q1 2021 hedge fund letters, conferences and more Keep checking back as we will be updating this post as the conference goes Read More

Before Taylor Morrison, TRI Pointe Homes Inc (NYSE:TPH) went public in January, and Silver Bay Realty Trust Corp (NYSE:SBY) in December. The U.S. housing market is strengthening. Record low mortgage rates have helped boost home sales. New home construction in February rose to its highest level since the housing crash. The homebuilder aims to reap benefits of the recovery.

TPG Capital and Oaktree Capital Group LLC (NYSE:OAK), the owners of Taylor Morrison said its the right time to take advantage of increasing demand for new stocks as markets touch record highs. After the offering, Oaktree and TPG each will own 39.5 percent shares. Investors in the IPO will hold 19.5 percent stake, according to the regulatory filing. Taylor Morrison said it will use a part of the proceeds to return about $300 million to existing shareholders that include TPG and Oaktree Capital Group.. The two private equity firms acquired the homebuilder in 2011 from Taylor Wimpey for $955 million.

The company also said in its filing that it plans to raise an additional $500 million in debt after the IPO, subject to market conditions, for general corporate purposes. The stock will trade in the New York Stock Exchange under “TMHC” symbol.

No posts to display