Ben van der Meer
Prominent Sacramento-area developer The New Home Co. made its Wall Street debut Friday, with an initial public offering of stock priced at $11 a share.
Chief operating officer Tom Redwitz said it was a highly gratifying day for his company, which was founded in 2009 and managed to grow while homebuilding was all but nonexistent.
“It’s a really exciting milestone,” Redwitz said from the New York Stock Exchange Friday morning. “Now being a public company, that gives us fresh capital to continue growing the company.”
Redwitz said growth will include new projects in the Sacramento region, with The Cannery, a redevelopment project of housing and commercial buildings on a former tomato cannery in Davis, among the more prominent ones. The New Home Co., based in Southern California, also is making plans to be part of Folsom’s future development south of Highway 50 with a project called Russell Ranch.
The IPO Friday included selling about 7.8 million shares of stock, with another 1.1 million available for underwriters. Redwitz said it’s also a good time to reflect on the initial investors, and people such as himself who spent their own money, who got the company off the ground.
Friday’s IPO was expected to raise about $76.7 million for The New Home Co., with the new funding to be primarily used for land acquisition, development and home construction.
“Today’s event allows us to build more lots within community plans where we’re already established,” he said. “The question has been how much we’d build out, and now we know.”
The New Home Co. is trading under NYSE: NWHM.