Realogy expects IPO to price at $23-$27 per share
PARSIPPANY, N.J. (AP) — Realogy Holdings Corp., which operates franchise real estate brokerage brands such as Century 21 and Coldwell Banker, expects its initial public offering of stock to price from $23 to $27 per share.
That translates to as much as $1.24 billion in proceeds, based on the sale of 46 million shares, according to documents filed Friday with the Securities and Exchange Commission.
Realogy plans to sell 40 million shares, but underwriters have the option to sell an additional 6 million shares to cover excess demand.
At the midpoint of the price range — $25 — the IPO could raise as much as $1.15 billion.
The Parsippany, N.J., company intends to use the net proceeds from the offering to pay down some $650 million in loans and other debt on its books.
In addition to Coldwell Banker and Century 21, Realogy is a franchisor of several other real estate brokerage brands, including ERA, Sotheby's International Realty and Better Homes and Gardens Real Estate.
Realogy also owns and operates about 725 brokerage offices in more than 35 U.S. metropolitan areas, and runs relocation, title and settlement services businesses.
The company makes money from royalty fees received under long-term agreements with its franchisees. The fees are based on a percentage of the franchisees' sales commissions.
It also collects commission income from transactions handled through company-owned brokerages, and revenue via its other business segments.
Realogy was spun off of the former Cendant Corp. in 2006, and was briefly a public company before being taken over by Domus Holdings LLC., an affiliate of private equity group Apollo Management the following year.
Last year, Realogy's revenue totaled $4.09 billion, essentially flat with 2010. The company's net loss grew in 2011 by more than fourfold to $441 million, compared with a loss of $99 million a year earlier.