US: Miami-based short-term rental operator CorpHousing Group, has filed with the US Securities and Exchange Commission [SEC] to raise up to $30 million in an initial public offering [IPO].
The company is aiming to raise $30 million by offering 4.3 million units at a price range of $6 to $8, according to Renaissance Capital. Each unit consists of one share of common stock and one half of one warrant exercisable at 115 per cent of the offer price.
At the midpoint of the proposed range, CorpHousing Group would achieve a market value in the region of $653 million.
With a mission to assemble and manage proprietary “Class A” multifamily real estate in high-density urban and metropolitan markets in the United States, CorpHousing caters to both business and leisure travellers under its SoBeNY consumer brand.
In addition, CorpHousing Group works in partnership with development firms, commercial real estate advisors, real estate investors and property managers to raise the level of professionalisation and standardisation within the short-term rental industry.
The firm’s portfolio of three- and four-star hotel properties, residential apartment units and apartment buildings designated for commercial use currently includes 490 accommodation units spanning nine cities across the country. This year, it wants to be operating at least 3,600 units in 12 cities within the next 12 months and launch international expansions in Europe, either in London or Paris.
It is believed that CorpHousing Group filed confidentially on 6 December and it plans to list on the New York Stock Exchange under the ticker symbol “CHG”. Maxim Group LLC has been touted to underwrite the transaction, although no timeframe on the IPO has yet been disclosed.
Founded in 2017 before officially launching in 2019, the company says that it booked $16 million in revenue for the 12 months leading up to 30 September last year.
In March, STRz reporter Eloise Hanson spoke to Brian Ferdinand, owner of SoBeNY and managing partner of CorpHousing Group, about the opportunities to operate and manage a diversified portfolio.