Taylor Wimpey plc (LON:TW) Morrison expects $523.8 million from IPO

by Paul Wilson | Tuesday, Apr 2, 2013 | 4661 views

Northern, WI 04/02/2013 (usastockreport) – The housing market is finally looking a little brighter and both, home prices and sales have picked up. The country had been reeling under a crash that was the worst the countries had seen since the Great Depression. The prominent Canadian builder, Taylor Morrison Home Corporation has filed an Initial Public offering worth $523.8 million. According to a regulatory filing, close to 23.8 million shares are being offered at a price of $20-$22 each. The company has plans to start trading under the TMHC ticker at the New York stock exchange.

Housing demand improving
Oaktree Capital Management LP and TPG Capital jointly own Taylor Wimpey plc (LON:TW) (Current: 90.90 GBX, Up by 3.00%) and they want to take advantage of the increase in new-equity demand. Americans are now getting more confident with their spending and are looking at investing in new homes and property. The company was originally part of Taylor Wimpey plc (LON:TW) (Current: 90.90 GBX, Up by 3.00%), its British parent company. Later, it was acquired by a group of investors who had the backing of David Bonderman’s TPG and Oaktree and JH Investments Inc. Post the Initial Public offering, both Oaktree and TPG will control 39.5 percent each of the company shares.

Taylor Morrison Home Corporation is selling its entire stock in the offering and the proceeds from the sale will be channelized towards purchasing shares of the company from Oaktree and TPG as well as to repay the company borrowings. In 2012 the company ranked amongst the country’s largest builders.

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