Friday
August 22, 2014

RE/MAX Readies for Stock Market Debut

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RE/MAX Readies for Stock Market Debut

RE/MAX Holdings Inc. will go public on the New York Stock Exchange Wednesday, which is expected to be closely watched by investors to gauge perceptions about the nation’s housing recovery. 

“I do think RE/MAX is worth watching, if only to see which way the market jumps — it could be an important tell for everything associated with residential real estate,” says Mad Money host Jim Cramer.

RE/MAX, which will be listed on the New York Stock Exchange under the ticker symbol “RMAX,”  expects to raise at least $177 million from its initial public offering. It plans to offer 10 million shares of its IPO, priced between $19 and $21 per share.

RE/MAX officials said they plan to use some of the proceeds to reacquire regional RE/MAX franchise rights in some markets. Based in Denver, the franchise network is made up of more than 90,000 real estate agents within 6,300 offices across the nation and internationally. 

RE/MAX is following in the footsteps of several other real estate companies that have gone public in recent months, including Realogy Holdings -- which includes brokerages like Century 21, Coldwell Banker, and Sotheby’s International — as well as home builders, such as TRI Pointe Homes and Taylor Morrison Home Corp., and the online real estate company Trulia Inc. 

Source: “RE/MAX set to go public Wednesday,” Inman News (Sept. 26, 2013) and “RE/MAX Prices IPO of 10M Shares,” The Associated Press (Sept. 19, 2013)

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