TRI Pointe Homes Inc., raised $233 million in the first initial public offering by a U.S. home builder in more than eight years.
Shares of the single-family home builder jumped 12 percent, or $2.05, to $19.05, on the New York Stock Exchange on Jan. 31. TRI Pointe priced 13.7 million shares at $17, above the original $14-to-$16 range.
The last IPO from a builder came from Comstock Homebuilding Cos., now known as Comstock Holding Cos., in December 2004, according to data provider Dealogic.
TRI Pointe builds homes in planned communities mostly in major cities in Northern and Southern California. The company plans to open its first community in Colorado in the second quarter of this year.
After the worst housing slump in generations, steadily improving data on home prices, home sales, and construction permits have recently rejuvenated housing stocks. Last month, Lennar Corp., D.R. Horton Inc., and PulteGroup, Inc., all reported a surge in fourth-quarter profits.
Bankers and investors have said the improvements are helping bring more housing-related companies to the IPO market.
Home builders are turning to debt and public-equity markets to raise cash as buyer demand for new construction rises amid low mortgage rates and a shrinking supply of existing residences for sale.
Plywood-maker Boise Cascade, LLC, will launch an IPO this week valued at as high as $212 million. Taylor Morrison Home Corp., a single-family home builder, disclosed its plans to go public last year but has not set a date.
For more information, visit www.tripointehomes.com.
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