Taylor Morrison Home Corp., a builder with operations in Orange and San Diego counties as well as the Bay Area, is preparing to raise up to $602 million by selling a minority stake to the public as the recovery in housing takes off.
Taylor Morrison, based in Scottsdale, Ariz., said in a Securities and Exchange Commission filing Monday that it planned an initial public offering of 23.8 million shares of common stock at $20 to $22 a share, adding an additional 3.6 million shares if demand is strong.
The company, which also builds homes in Texas, Colorado, Florida and Canada, said it “will be one of the largest public home builders in North America” if the transaction is completed.
“We believe that a U.S. housing recovery is underway on a national basis, driven by consumers who are increasingly optimistic about their economic prospects and supported by several recent positive economic and demographic factors,” the company said.
Those factors include job growth, increasing consumer confidence and interest in home purchases, record low mortgage rates, declines in the number of homes available for sale, and an increase in formation of new households, the company said.
Taylor Morrison is owned by private equity firms TPG Capital and Oaktree Capital Management. It said sales orders rose by 46% from 2011 to 2012, and that it earned $430.8 million on revenue of $1.4 billion last year.
Taylor Morrison is among a number of home builders, including KB Home of Los Angeles, that have announced plans to raise money to take advantage of the stronger housing market.