Kaufman & Broad Raises $117 Million

Kaufman & Broad Homes Corp. raised $117 million by selling about half of its French subsidiary in an initial public offering. The Los Angeles-based home builder will receive about $85 million in the form of a special dividend. The proceeds will be used to repurchase shares and to reduce debt. In addition, the U.S. company will initially receive annual royalties equal to about 1.5% of total revenue generated by the new French company, known as Kaufman & Broad S.A. The French firm will use the proceeds to expand and take advantage of rebounding real estate markets in France and elsewhere in Europe. Kaufman & Broad completed 2,370 homes last year in France. Shares of the new French company will trade on the Paris Bourse. On the New York Stock Exchange, Kaufman & Broad shares fell 75 cents to close at $20.69.