Re/Max Holding's IPO generates $220 million
Last Updated: 16:02 October 2, 2013
After deducting underwriting discounts, commissions and offering expenses, the Denver-based company said it expects to net about $194.2 million in proceeds.
Re/Max sold 10 million shares of common stock for $22 per share. That price was slightly above the estimate of $19 to $21 the company had announced a couple of weeks earlier. Underwriters have a 30-day option to purchase up to 1.5 million additional shares to cover overallotments.
Shares began trading Wednesday on the New York Stock Exchange under the ticker symbol RMAX. The stock opened at $26.25 and was trading at $27.41 by mid-afternoon.
Re/Max has said it will use proceeds from the offering to reacquire regional franchise rights in certain markets, redeem preferred membership interests and repurchase ownership stakes from existing shareholders. However, it appears effects on local Re/Max franchises could be minimal.
"There are no changes to offices in Boulder," Re/Max vice president of public relations Shaun White said recently. "There are no ownership changes."
Colorado Re/Max franchises belong to the Mountain States master franchise, which the corporate office bought in 2007.
"We're not looking to buy individual franchises," White said.
White added that there are no plans to change the franchise fees that Re/Max charges.
Re/Max franchises in Boulder County include Re/Max of Boulder; Re/Max Alliance in Boulder, Louisville, Longmont and Nederland; Re/Max Traditions in Longmont; and Re/Max Vista in Erie. Re/Max of Boulder Inc. was the largest residential real estate brokerage in the nation by sales volume in 2012, reporting $695 million in sales.
Re/Max has more than 90,000 agents operating in more than 90 countries.
More breaking news...
WhiteWave buying Earthbound Farm
Jobs grant will aid flood-impacted counties
Broomfield-based WhiteWave (NYSE: WWAV) said the deal is expected to close in the first
Job growth to continue in state next year
About 230 temporary workers will be hired to clean up and repair areas in