Tricon Residential, which owns and operates rental housing in the US and Canada, filed on Tuesday with the SEC to raise up to $350 million in an initial public offering.
The Toronto, Canada-based company plans to raise $350 million by offering 26.3 million shares at $13.30, the as-converted last close of its shares on the TSX (TCN). The company plans to raise an additional $45 million in a concurrent private placement to Blackstone. At the midpoint of the proposed range, Tricon Residential would command a market value of $3.4 billion.
Tricon is a residential real estate company primarily focused on owning and operating rental housing in the US and Canada. Tricon's US rental strategy, in both single-family and multi-family rental, is focused on select geographic markets in the Sun Belt and targets the "middle-market" resident demographic. Tricon owns and operates one of the largest portfolios of single-family rental homes in the Sun Belt, with approximately 25,000 homes in 19 markets across 10 states. It also owns a portfolio of suburban garden-style apartments primarily in the Sun Belt, comprised of 23 properties totalling 7,289 suites in 13 major markets.
Tricon Residential was founded in 1988 and booked $544 million in revenue for the 12 months ended June 30, 2021. It plans to list on the NYSE under the symbol TCN. Morgan Stanley, RBC Capital Markets, Citi, and Goldman Sachs are the joint bookrunners on the deal. It is expected to price during the week of October 4, 2021.
