ALISON VIEJO, CA-The New Home Company LLC which builds and sells homes in metropolitan California, plans to raise $125 million in its IPO, which is scheduled to for today.
The firm will offer 7.8 million shares at an expected price range of $15-$17 per share, in hopes of hitting a market value of $265 million, according to investment website Seeking Alpha.
NWHM is focused particularly on coastal Southern California, the San Francisco Bay Area, and metro Sacramento. The firm creates both stand-alone and master-planned communities, developed by third parties, and builds homes designed for a wide variety of customers; prices range from approximately $300,000 to $3.2 million.
The company utilizes a joint venture strategy, in which it contributes a minority share of capital and in turn receives distributions exceeding its percentage capital interest, plus management fees. This allows NWHM to maintain swift profitability and establish a homebuilding platform focused on the high-growth, land constrained markets of metropolitan California.
The company’s four founders also serve as its top executives. CEO Larry Webb, CFO Wayne Stelmar, CIO Joseph Davis, and COO Tom Redwitz have worked together for decades.
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