NEW YORK (AP) -- Silver Bay Realty Trust Corp. has raised $245.1 million in its initial public offering of stock, which it intends to use to buy thousands of single-family homes.
Silver Bay was recently created to buy homes and rent them out, as the U.S. housing market slowly heals. It will be managed by investment firms Pine River and Provident.
Sales of newly built and previously occupied homes are up from a year ago. Home prices have increased. And builders are more confident in the market and are responding by starting construction on more homes.
Silver Bay said Friday that it priced 13.3 million shares at $18.50 apiece, the low end of its expected range of $18 to $20 per share. That suggests modest demand for the company's stock. The banks managing the deal may buy another 2 million shares.
The stock is set to begin trading Friday on the New York Stock Exchange under the symbol "SBY."
Silver Bay is expected to buy about 3,100 single-family homes after its market debut from Two harbors Investment Corp., a publicly traded real estate investment trust, and from Provident.