RE/MAX, one of the world’s leading franchisors of real estate brokerage services, today announced that it has publicly filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission relating to a proposed initial public offering of its common stock. According to the press release from the company, the RE/MAX brand name has held the number one market share in the U.S. and Canada since 1999. The timing, number of shares to be offered and the price range for the offering have not yet been determined. RE/MAX intends to apply to list its common stock on the New York Stock Exchange.
It’s interesting to see one of the industry’s largest brands trying to bump up its market power by going down the path to becoming a public company. According to a letter sent to RE/MAX staff today, if the IPO occurs the company will have much deeper capital resources to fund new initiatives to continue to strengthen the RE/MAX brand. While there were no specifics mentioned as to how the additional funds will be used it would make sense that the company would likely focus on continuing to strengthen its online presence as well as programs to strengthen their franchises’ business opportunities.
The filing does NOT make RE/MAX a public company. It is the first step to achieving an IPO.
Copies of the preliminary prospectus relating to the offering may be obtained, when available, from Morgan Stanley, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, or telephone: 1-866-718-1649, or email: prospectus@morganstanley.com ; BofA Merrill Lynch, 222 Broadway, New York, NY 10038, Attn: Prospectus Department or email: dg.prospectus_requests@baml.com; or J.P. Morgan, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or telephone: 1-866-803-9204.
In case anyone was wondering if our industry is in a state of flux at the moment, this is another clear indicator that we’re entering a new phase. It will be interesting to see how it all plays out.
