RE/MAX Holdings Inc., one of the leading of real estate brokerages worldwide submitted a regulatory filing with the Securities and Exchange Commission (SEC) for an initial public offering (IPO) for its common stock.
RE/MAX market share
The RE/MAX brand has held the highest market share in the United States since 1999. RE/MAX Holdings Inc. has 92,000 real estate agents worldwide as of July 31.
The real estate brokerage services franchisor aims to raise $100 million in the IPO. RE/MAX Holdings Inc. will be trading under the ticker symbol “RMAX” at the New York Stock Exchange (NYSE). The company has not yet determined the price range and the number of shares it will be offering during its IPO, which means the amount of the placeholder will still change.
In 2012, RE/MAX Holdings Inc. reported $143.7 million in revenue. The company said it will use some of the proceeds of the IPO to purchase franchise rights in the Southwest and Central Atlantic regions of the United States.
Dave Linger and Gail Liniger established the company in 1973. The founders serve as chairman and vice chairman of the board and remain majority owners of the company. Private equity firm Weston Presidio supports the company’s IPO.
Underwriters of RE/MAX Holdings
The underwriters of RE/MAX Holdings Inc include Bank of America Corp (NYSE:BAC), Morgan Stanley (NYSE:MS) and JPMorgan Chase & Co (NYSE:JPM).
Realogy Holdings Corp (NYSE:RLGY) raised $1 billion from its IPO in October last year. The stock increased by 26% from its offering price at $27 to $34.20 per share during its first day of trading. Since its IPO the stock value of the company climbed by almost 60%. The stock closed at $41.80 per share on Monday.
The stock price of other real estate companies such as Zillow Inc (NASDAQ:Z) and Trulia Inc (NYSE:TRLA) also moved upwards since their IPO. Zillow gained more than three times its initial offering price since it went public in 2011, and it is currently trading around $84.74 a share. Trulia went public last year, and stock value climbed by approximately 170% from its offering price at $17 per share. Trulia Inc (NYSE:TRLA) is trading around $43.66 per share. Both stocks declined on Monday as mortgage rates started to increase.
During the second quarter, prices of single-family homes rose in majority of cities (87%) in the United States, according to the National Association of Realtors. The median price increased by 12% to $203,500, which is the largest gain since the fourth quarter of 2005. Last week, the Department of Commerce reported that the housing market started to increase in July.