Re/Max Holdings Inc set to do IPO
The franchiser of real estate brokerages, Re/Max Holdings Inc. had filed documentation to raise as much as USD241.5 million in an initial public offer of shares in the United States. This comes at a time when the US property market is on the rebound and shares of housing service firms recover from its doldrums.
Re/Max had planned to sell a volume of 10 million shares between USD19 and USD21 each according to documents filed with regulatory authorities. The full amount, including overallotment options, was increased from the initial target of nearly USD100 million.
The US housing industry is on recovery mode from its worst decline since the Great Depression. At the forefront are companies that provide services in home sales and in searches. Examples of these companies include Realogy Holdings Corp, the owners of Century 21 and Coldwell Brands, who recently earned USD1.08 billion from an IPO last October 2012. Since the shares of the firm were publicly traded, the share values have jumped 70% overall.
Re/Max had reported revenue USD143.7 million for 2012 and is planning to be listed on the New York Stock Exchange. According to an August 19 filing, the over 6.300 offices are owned either by agents or franchise holders.