The timing of the Legacy Housing IPO is an interesting.
The firm is attracting attention on its own merits from investors and analysts, who – for example – note that the two principles will have some 57 percent of the stock. The solid growth track-record for Legacy (LEGH), having their own financing available, a combination of both vertical retail and independent distribution are among the talking points. More detailed reports are found by clicking on the box linked below.
But beyond the firm’s own credentials for the launch today on the tech-heavy NASDAQ, are other factors that can sway investors. The affordable housing crisis plus the obvious merits of manufactured homes (MH) are talking points that manufactured home community REITs and MH producers alike point to in their investor relations packets.
There is no doubt that the manufactured housing market has proven to be a durable one.
For those investors who are already sold on manufactured housing, the purportedly self-inflected storm-clouds over Cavco Industries (CVCO) – for example – is a possible attraction for those who may want to hedge their portfolios by investing in LEGH.
But there are also what could be arguably be deemed artificial headwinds that Berkshire Hathaway brands operating in manufactured housing, and also through the Clayton Homes et al dominated Monopolistic Housing Institute (MHI), err, pardon the typo, the Manufactured Housing Institute (MHI) to consider.
Political correctness – the PC movement – is arguably a form of manipulation and control. 40+ years ago, long before the PC culture took hold, people were aware of the notion that we should be polite and respectful of others.
There is apparently more antitrust talk coming out of Washington, D.C. that at any time in recent years. The FAANG stocks and Warren Buffett led Berkshire itself are on the radar of federal regulators. Berkshire’s “Moat” strategies are becoming better understood by mainstream media, and has been spotlighted here on MHProNews in a depth not found elsewhere.
Legacy and privately held Sunshine Homes have demonstrated above average growth by taking their future into their own hands by engaging in marketing apart from MHI. That’s something savvy investors should like.
With several federal and other investigations reportedly underway against Clayton Homes, 21st Mortgage Corp (21st), and Vanderbilt Mortgage and Finance (VMF), is this the time for manufactured housing to break free of the iron grip of Berkshire? Will a combination of feds and other potentially looming legal actions against Berkshire brands and/or MHI be a boon to manufactured housing independents, like Legacy?
Time will, of course, tell. Clearly, the principals of Legacy apparently believe so.
They are not alone, as others have taken the regulatory rollbacks of the Trump Administration and his antitrust signals seriously. A few other new manufacturers have also launched.
And with Legacy’s recent marketing and educational efforts yielding their biggest backlogs ever, per their own filings, this will be an interesting day for traders and the industry. Many will be keeping an eye on Legacy (LEGH) during and at the close of the day, and naturally some will be jumping on their bandwagon.
As a disclosure, MHProNews has no position in any of the tracked stocks in manufactured housing, and has no plans to initiate a position in the next few days. Our reports are independent, which is perhaps among the reasons why we are the runaway most read trade media in all of manufactured housing. “We Provide, You Decide.”
DALLAS, Dec. 14, 2018 (GLOBE NEWSWIRE) — Legacy Housing Corporation (Nasdaq: LEGH), the fourth largest producer of manufactured homes in the United States and a recognized leader and innovator in the manufactured housing industry, announced today the pricing of its initial public offering of 4,000,000 shares of common stock at a public offering price of $12.00 per share. The gross proceeds of the offering, before deducting underwriting discounts and commissions and other offering expenses payable by Legacy Housing, are expected to be $48.0 million. All of the common stock in the offering is being offered by Legacy Housing. Legacy Housing has granted the underwriters a 30-day option to purchase up to an additional 600,000 shares of Legacy Housing common stock at the initial public offering price, less underwriting discounts and commissions.
Legacy Housing intends to use the net proceeds of the offering to expand its retail presence in the southern United States and surrounding geographic markets, provide financing solutions to select housing community-owner customers, repay debt and pursue possible acquisitions, and use the remainder for working capital and general corporate purposes.
Legacy Housing’s common stock is expected to begin trading on The Nasdaq Global Select Market on December 14, 2018, under the ticker symbol “LEGH.” The offering is expected to close on December 19, 2018, subject to satisfaction of customary closing conditions.
The offering is being made through an underwriting group led by B. Riley FBR, Inc., Oak Ridge Financial and National Securities Corporation, which are acting as joint book-running managers for the offering.
A registration statement relating to the shares being sold in this offering was declared effective by the Securities and Exchange Commission on December 12, 2018. This offering is being made only by means of a prospectus. Copies of the final prospectus related to this offering may be obtained, when available, from: B. Riley FBR, Inc., Attention: Prospectus Department, 1300 14th Street North, Suite 1400, Arlington, VA 22209, or by telephone at (800) 846-5050 or by email at email@example.com; Oak Ridge Financial, Attention: Joseph Sullivan, 701 Xenia Avenue South, Suite 100, Golden Valley, MN 55416, or by telephone at (800) 231-8364 or by email at firstname.lastname@example.org; or National Securities Corporation, Attention: Marguerite O’Brien, 200 Vesey Street, 25th Floor, New York, NY 10281, or by telephone at (212) 417-8164 or by email at email@example.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Legacy Housing Corporation
Legacy Housing Corporation builds, sells and finances manufactured homes and “tiny houses” that are distributed through a network of independent retailers and company-owned stores and are sold directly to manufactured housing communities. We are the fourth largest producer of manufactured homes in the United States as ranked by number of homes manufactured based on information available from the Manufactured Housing Institute and IBTS for the second quarter of 2018. With current operations focused primarily in the southern United States, we offer our customers an array of quality homes ranging in size from approximately 390 to 2,667 square feet consisting of 1 to 5 bedrooms, with 1 to 3 1/2 bathrooms. Our homes range in price, at retail, from approximately $22,000 to $95,000.
Forward Looking Statements
This press release contains forward-looking statements, including with respect to the expected closing of Legacy Housing’s initial public offering. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including that the conditions to the closing of the initial public offering are not satisfied. Legacy Housing undertakes no obligation to update any such forward-looking statements after the date hereof, except as required by law.
Source: Legacy Housing Corporation
Neal Suit, (817) 799-4906
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