RE/MAX to list on stock exchange on Wednesday, could raise $200m.

 by Adriaan Grove 
 MyProperty CEO
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RE/MAX Holdings Inc. will go public on Wednesday, listing on the New York Stock Exchange. It will trade under the symbol RMAX. Investors will closely watch this to gauge perceptions about the US housing recovery.

It plans to offer 10 million shares priced between $19 and $21 per share, raising at least $177m from its IPO. This follows other real estate companies going public recently, including Realogy (which includes Century 21, ERA and Sotheby's with a market cap of $6.25b) and online real estate company Trulia (with a market cap of $1.57b).

BofA Merrill Lynch, Morgan Stanley and J.P. Morgan will act as joint book running managers for the IPO. According to its IPO filing about 74% of its revenue comes from the US market (RE/MAX reported net income of $18 million on revenue of $143.7 million for 2012). Interestingly, RE/MAX will use some of the proceeds to reacquire RE/MAX franchise rights in some US regions. 

I'm wondering what long term impact this will have on not only RE/MAX franchises in the US but more importantly South Africa? What I find rather appealing, is that RE/MAX agents can now buy shares in their own company, which could have a positive spin-off - at least in the US where most of the revenue is generated. What impact is there for the local RE/MAX franchises? I followed this up with CEO, Adrian Goslett:

Comments from Adrian Goslett, CEO of RE/MAX Southern Africa:

The listing of the RE/MAX brand on the stock exchange will firstly strengthen the brand’s image and global positioning, as well as give international investors the chance to buy into one of the world’s largest residential real estate companies. 

Although the brand is already the leading real estate franchisor in the US and Canada, listing on the stock exchange will create a market for the company’s share, which will further enhance the brand’s status and financial standing globally. The increased public awareness and interest in the brand will also assist in positioning RE/MAX as the real estate brand of choice both in the US and here in Southern Africa. Due to the increased accountability to the shareholders and the need to adhere to the strict rules and regulations of the governing bodies, the levels of professionalism within the RE/MAX brand globally will set the bar within the industry and clients can rest assured that they are dealing with a world-class company.
The global RE/MAX footprint continues to expand with a presence in over 90 countries and more than 6000 offices and 90 000 real estate agents worldwide. 

RE/MAX in Africa continues to grow having recently opened in Tanzania, Kenya, Uganda, Morocco, Tunisia, Egypt. In Southern Africa the brand has grown in market share to the point that it is now placing almost 3000 families in homes every month.

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  • Adriaan Grove - posted 02 Oct 2013 02:09 PM                                    

    RE/MAX Holdings just started trading and shares surged to a current trading of $26/share - live overview here:

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