California-based homebuilder TRI Pointe Homes, which focuses on single-family homes in planned communities, has filed for an IPO.
Although TRI Pointe got its start in the middle of the real estate depression in April 2009, its co-founders saw a big opportunity to create a next-generation regional homebuilder by developing sophisticated techniques to locate properties. TRI has sold over 350 homes, which have price points that span between $300,000 to $1.5 million.
Back in September 2010, the company received an equity commitment of $150 million from Starwood Capital Group. The head of that fund is Barry Sternlicht, a legend in the real estate business.
And yes, TRI has been growing at a rapid clip. From fiscal 2010 to 2012, revenues have gone from $4.1 million to $26.5 million. Still, the company continues to lose money. For the first nine months of 2012, the net loss was $4.6 million.
Of course, homebuilders have been red-hot in 2012, with huge gains from operators like KB Home (NYSE:KBH), Ryland Group (NYSE:RYL) and Hovnanian Enterprises (NYSE:HOV). So, it should be no surprise that the IPO market will also see action from homebuilders. In fact, in early December, homebuilder Taylor Morrison Home filed for a public offering.
TRI Pointe’s lead underwriters include Citi (NYSE:C), Deutsche Bank (NYSE:DB) and FBR Capital Markets. The company plans to list on the NYSE under the ticker of TPH.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.
A long-time follower of the IPO scene, back in 1999 Tom started one of the first sites in the space called WebIPO. It was a place where investors got research as well as access to deals for the dot-com boom. Tom also wrote the top-selling book, Investing in IPOs. In it, he covers all the aspects of analyzing an IPO, such as reading the prospectus, detecting the risk factors and understanding some of the arcane regulations. But don’t worry — if that process is too intimidating for you, thankfully Tom will do the legwork for you right here in the IPO Playbook blog.
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