Homebuilder Taylor Morrison Home Corp priced its initial public offering of 23.8 million Class A shares between $20-$22 per share as it looks to cash in on investor interest in the recovering U.S. housing market.

At the mid-point of the expected range, the company is looking to raise about $500 million.

Record-low mortgage rates and rising selling prices have driven up demand to levels that large U.S. builders are struggling to meet, creating room for smaller companies.

Shares of Tri Pointe Homes LLC, which in January became the first U.S. homebuilder to go public in over a decade, and those of plywood and lumber maker Boise Cascade Co surged in their market debut.

Scottsdale, Arizona-based Taylor Morrison is backed by Oaktree Capital Management, TPG Global and JH Investments Inc.

Credit Suisse and Citigroup are lead underwriters to the offering.