UCP looking to raise up to $125M from its IPO

UCP looking to raise up to $125 million from its initial public offering of common stock

Associated Press

NEW YORK (AP) -- Homebuilder and land developer UCP is looking to raise up to $125 million from an initial public offering of common stock.

In a filing with the Securities and Exchange Commission, the company did not disclose how many shares it planned to offer or what the expected price range would be.

UCP is giving the underwriters an option to purchase additional shares, but did not specify how many shares that would be. It also said that PICO Holdings Inc., its sole stockholder, is also giving the underwriters an option to buy additional shares, but did not disclose that amount either.

UCP said it plans to use the offering's net proceeds mostly for land acquisitions. It also plans to use proceeds for land development, home construction and other related purposes.

The San Jose, Calif., company's operations started in 2004 when Union Community Partners LLC was founded. It was acquired by diversified holding company PICO in January 2008. Homebuilding subsidiary Benchmark Communities LLC, which constructs single-family homes, was created in 2010.

UCP said it won't receive any proceeds from shares sold by PICO if the underwriters exercise their option to buy additional shares.

UCP's property portfolio included 45 communities in 15 cities in Northern California and the Puget Sound area of Washington state as of Dec. 31.

The company reported 2012 revenue of $58.1 million. This compares with revenue of $24.2 million in 2011.

UCP LLC said that it plans to list its shares on the New York Stock Exchange under the "UCP" ticker symbol.

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