Real estate firm La Rosa Holdings slashes unit offering by 53% ahead of $7 million IPO

La Rosa Holdings, a Florida-based residential real estate brokerage franchise, on Wednesday reduced the size of the proposed deal for its upcoming IPO.

The Celebration, Fla.-based company now plans to raise $7 million by offering 0.7 million units priced between $9 and $11. The company had previously filed a case to offer 1.5 million units in the same range. Each unit still consists of one common share and one warrant, exercisable at 110% of the IPO price. At the revised deal size, La Rosa Holdings will raise -53% less than expected and reach a market value of $43 million (-4% from original terms).

Since the company offers units with warrants, La Rosa Holdings will be excluded from Renaissance Capital’s 2022 IPO statistics.

La Rosa is the holding company for five full-service, agent-centric, cloud-based real estate companies. Its real estate brokerage business operates primarily under the trade name La Rosa Realty, although it also licenses the trade name Better Homes Realty. The Company has five La Rosa Realty corporate real estate brokerage offices located in Florida, 28 franchise offices in six states in the United States and Puerto Rico, and an international franchise office in Peru.

La Rosa Holdings was founded in 2004 and had revenue of $29 million for the 12 months ended March 31, 2022. It plans to list on Nasdaq under the symbol LRHC. Maxim Group LLC is the sole bookrunner for the transaction.

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