Overview

Invitation Homes LP (Pending:INVH) expects to raise $1.61 billion in its upcoming IPO (if underwriters exercise their option to purchase additional shares).

Based in Dallas, Texas, Invitation Homes owns and manages renovated single-family homes in several key markets in the United States. We previewed this deal on our IPO Insights platform.

Invitation Homes will offer 77.0 million shares at an expected price range of $18 to $21. If the underwriters price the IPO at the midpoint of that range, INVH will have a market capitalization of $6.1 billion.

INVH filed for the IPO on January 6, 2017.

Joint Bookrunners: Deutsche Bank, J.P. Morgan Securities, BofA Merrill Lynch, Goldman Sachs, Wells Fargo Securities, Credit Suisse, Morgan Stanley, RBC Capital Group

Underwriters: Blackstone Advisory Partners, BTIG LLC, Evercore Group, FBR Capital Markets, JMP Securities, Keefe Bruyette & Woods, Raymond James, Siebert Cisneros Shank & Co., Zelman Partners

Business Summary: Owner and Operator of Rental Homes

As described in its SEC Filings, Invitation Homes LP owns and manages renovated single-family homes for rent in the western U.S. and Florida. Founded in 2012, the Dallas, TX-based company is a subdivision of Blackstone Group LP (NYSE:BX) and oversees approximately 50,000 properties.

Blackstone developed the company following the housing crash, making large investments in properties at depressed prices. This was in an attempt to institutionalize the business of leasing single-family homes. Invitation is the first company to begin offering residents a chance at becoming homeowners.

Financial Overview

For the nine months ended September 30, 2016, the company booked rental revenues of $654,726,000, up 11% from $587,913,000 in 2015. Invitation Homes plans to use the proceeds from its IPO to pay down its debt, as well as for general corporate purposes.

Beginning in 2012, with a Phoenix home worth $100,000, Blackstone engaged in a multi-year homebuying surge throughout 14 metropolitan regions. At its high point, the company spent over $150 million per week on foreclosed homes. Currently, Invitation Homes manages an estimated 50,000 residences.