In a move that is becoming increasingly common in the real estate industry, Realogy Holdings Corp has started trading as an IPO today, And yesterday announced the pricing of its initial public offering of 40,000,000 shares of common stock at $27.00 per share. An additional 6,000,000 shares will be available to the Underwiters at their option at $27.00, less underwriting discounts and commissions. The stock ticker symbol for the Company is RLGY and they start trading today. AS of this writing, shares have climbed to $33.00 and 24 Million have been sold at this point.
The Company expects to receive proceeds from the sale of the 40 million shares, net of underwriters’ discounts and commissions and estimated offering expenses, of approximately $1.02 billion from the offering and intends to use the net proceeds of the offering, along with cash on hand, primarily to repay outstanding indebtedness. This approach has become a common way of paying back creditors for large national real estate related firms such as Zillow, and Trulia which have both filed IPOs in recent months.