Taylor Morrison Home Corp. is riding high so far in its Wall Street debut as the newly public home builder benefits from an improved housing market and a renewed appetite for building.
Shares of the Arizona firm rose $1.05 from its initial public offering price to $23.05 in afternoon trading Wednesday. The home builder had priced 28.6 million shares at $22 each.
The company has said it sees the housing market on the upswing, citing record low mortgage rates, low inventory, increased household formation, job growth and consumer confidence.
Rising home prices across the country have spurred builders into action as they seek to capture home buyers currently fighting over a shortage of few available homes.
Taylor Morrison said sales orders jumped 46% last year from 2011. Builders across the country are also ramping up construction. Building permits—an indication of future building—rose 4.6% in February from the month before, according to the Commerce Department.
Taylor Morrison is trading on the New York Stock Exchange under the symbol TMHC.