Real estate company Re/Max Holdings Inc has filed with U.S. regulators to raise up to $100 million US through an initial public offering of Class A common stock.
Re/Max, based in Denver, Colorado, operates through a network of agents and franchises and has about 92 thousand agents in 95 countries, including a strong network in Canada. Re/Max reported net income of $18 million on revenue of $143.7 million for 2012. About 74 per cent of its revenue comes from the U.S. market, its IPO filing says.
The company was founded in 1973 by Dave Linger and Gail Liniger, who currently serve on the board as chairman and vice chairman.
It plans to list on the New York Stock Exchange under the ticker RMAX, but has yet to release the number and price of shares it will offer. The $100-million figure could change closer to the listing date.
Re/Max said it would use some of the proceeds from the offering to acquire regional franchise rights in Southwest and Central Atlantic United States.
Other real estate related companies have benefited from the recovery in the U.S. market since the 2008 financial crisis, which led to the worst housing crash since the 1930s. Prices for single-family homes climbed in 87 per cent of U.S. cities in the second quarter, the National Association of Realtors said Aug. 8. The median price nationally was $203,500, up 12 per cent from a year earlier.
Competitor Realogy Holdings Corp., which holds Century 21 and Coldwell Banker, listed last October and has gained about 60 per cent in market value since it went public in a $1.1 billion offering. Shares of Zillow Inc., operator of the U.S. largest real estate information website, have more than doubled this year