According to a market source, Colony American Homes Inc. has postponed an initial public offering due to "market conditions". Colony American Homes Inc. is a real estate investment trust that buys and rents single family homes.
Colony American had expected deals for its 20 million shares that are between US$11.50 and US$13 per share. This would sum up to US$260 million. The company would have been valued at US$3.23 billion at the high end of the range.
Colony Capital, a real estate private equity firm owns Colony American through its subsidiary CAH Manager LLC.
Competitors for Colony American including Silver Bay Realty Trust Corp and American Properties Inc. have fallen below their IPO price. Silver Bay shares went down to about 5% from its debut in December while American Residential shares fell about 10% after its debut in May.
Lead underwriters for said offer are Credit Suisse, BofA Merrill Lynch and Morgan Stanley.
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