- RE/MAX goes public at $22 a share.
- Price rose more than 22% soon after it started trading.
- It trades under the symbol RMAX.
Denver-based RE/MAX began trading this morning. Although soaring may be a better way to describe it.
The stock went public at $22 per share, slightly higher than the $19 to $22 range originally anticipated in the initial public offering the Class A shares. Soon after it started trading under the symbol RMAX on the New York Stock Exchange, the stock rose almost $5 a share, or more than 22 percent. The total market cap of the company, however, was not immediately apparent.
In addition, the company has granted the underwriters a 30-day option to purchase up to an additional 1.5 million shares of Class A common stock to cover over-allotments, if any.
The net proceeds of the offering are estimated to be approximately $194.2 million after deducting underwriting discounts and commissions and estimated offering expenses.
The company, founded in Denver by David and Gail Liniger in 1973, intends to use the net proceeds from the offering to reacquire regional RE/MAX franchise rights in select markets, redeem preferred membership interests and to repurchase ownership stakes from existing shareholders.
Morgan Stanley, BofA Merrill Lynch and J.P. Morgan are acting as joint book-running managers for the offering.
William Blair, RBC Capital Markets and JMP Securities are acting as co-managers for the offering. Perella Weinberg Partners is acting as advisor to RE/MAX.
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