LGI Homes’ Quiet -Yet Successful IPO Last Week

Last week, LGI Homes (NASDAQ: LGIH) became the first homebuilder listed on the NASDAQ stock exchange, unfortunately it was the same day as Twitter’s IPO. So, while all of the attention was on TWTR, LGI Homes went public in its shadow. LGI Homes rung the opening bell on the NASDAQ floor Thursday and the stock, with little attention paid, quietly gained over 17% on their first day of trading.

LGI Homes is one of the nation’s fastest growing homebuilders engaged in the design and construction of entry-level homes across Texas, Arizona, Florida and Georgia.  The company focuses on converting apartment renters and single-family home renters into homeowners, by offering quality homes at affordable prices in affordable locations and by utilizing a well-established sales and marketing approach, a culture of customer service excellence and a highly efficient construction process. Since commencing operations in 2003, it has constructed and sold over 5,500 quality homes.

LGI Homes, operating in one of the most depressed sectors, has consistently reported growth and profits. On November 9 the builder celebrated its grand opening of Caddis Haley in Tucson.

“We raised almost $90 million — that’s a lot of capital,” Eric Lipar, CEO, said. “We want to use it to grow the company. In our industry, development has become more capital intensive within the last few years. We have raised private equity over the years, and it works really well for buying distressed property and doing quick turnarounds, but in a more normal market, traditional financing and proceeds from an IPO work really well.”

The initial offering was priced at $11 per share and shares were trading over $13 per share in after hours trading Wednesday.

For more information about LGI Homes’ new home communities, visit www.lgihomes.com. Eric Lipar should be reached at (281) 210-2619.