Shares of Scottsdale-based CaliberCos. soar on Nasdaq debut

CaliberCos Inc. shares soared more than 50% Wednesday, as the Scottsdale alternative asset management company made its debut in the stock market following its $4.8m initial public offering.

The stock of CaliberCos. opened trading on Nasdaq at $3.80 per share. By mid-morning, it had reached $4.22. Caliber's shares soared by 120% upon reopening to $8.80 before closing the day at $6. Follow the stock here.

Caliber's initial public offering, which included 1.2 million shares, was priced at $4 per share, generating $4.8 million in proceeds before discounts for underwriting, commissions and other offering costs, according to the regulatory filing of the company with the U.S. Securities and Exchange Commission.

According to the company, the IPO is expected close on May 19.

Caliber filed for its IPO on September 20, 2022, with 1.6 million shares at $5 to $6 per share. This would have raised $9 million. Caliber reduced its IPO in March to 1.2m shares priced at $5 each, equating a raise of $6 million. The share price was then dropped again.

Caliber plans to use the proceeds of its IPO as working capital and for operating expenses. The company may use some of the proceeds to purchase other businesses, technologies or products. However, it hasn't committed to any purchases at this time.

According to the regulatory filing, Caliber's revenue is primarily derived from asset management, performance allocations, advisory and transactional services and advisory fees.

The company generated revenue of $83.9 million dollars in 2022, and $56 millions in 2021. The regulatory filing shows that the firm incurred costs of $92.4 in 2022, and $78.1 in 2021.

Caliber will have more than 74 staff and $745,5 million in assets managed by the end of 2022. According to its website, some of the assets are multifamily properties and office buildings.

Caliber drives growth through credit and business equity products

Caliber was created to stimulate real estate investments in the middle market. These projects range from $5 million to $50,000,000. Caliber was a pioneer in the creation of Opportunity Zones funding for real estate. Its first fund raised $185 million from investors, which it then deployed to 22 projects across Arizona and Texas.

Chris Loeffler, CEO of CaliberCos wrote to shareholders that the company added a second Opportunity Zone fund in 2022. This will make it one of the biggest investors in this region.

Loeffler stated in a letter that he believes there are many opportunities for growth within the existing real estate verticals, which include residential and commercial properties as well as hospitality. Our deal pipeline is also diverse and robust. From a fundraising perspective we estimate that currently we only serve a fraction of the potential high-net-worth households in America, which leaves us a significant opportunity to expand our investor pool.

Caliber plans to grow into a full suite of business equity products, including private equity, venture capital and other equity-based credit products, which, according to its filing with the regulatory authorities, will help to drive further growth for the company.

Caliber purchased its Scottsdale headquarters for $19.5m in 2018. It assumed a $16.5m loan that it plans to repay by 2029. Caliber also launched a fund that invests primarily in apartment and office complexes.

CaliberCos. closed on a $45 million land lease to develop The Riverwalk Development alongside Loop 101 from Talking Stick Way in the south to Via de Ventura in the north, according to previous reports by Business Journal. The Business Journal reported that a land lease for $45 million was signed to develop The Riverwalk Development along Loop 101, from Talking Stick Way to the south up to Via de Ventura to the north. The project is expected to begin by the end the year.

Upon the closing of Caliber’s IPO in May, Loeffler, Jennifer Schrader and Jennifer Schrader will have a majority voting power through their Class B common stock.