Re/Max Holdings has filed for an initial public offering slated to be $100 million. By some analyst this is seen as yet another positive indicator for the US and Canadian housing market.
Revenue has been steady during the last three years despite the prolonged downturn in the sector. Cost cutting measures have dramatically improved profits over the same time frame. Revenue growth was more pronounces this year, but was more than offset by rising costs.
Part of the IPO and plan going forward is to boost the regions that REMAX owns outright from a 46% to 54% share of the agents. This increase will come from acquiring the central Atlantic and southwestern regions, which are currently owned by others. The move is expected to cost $27.3 MM between the two regions.
The remaining $70 MM (if the proceeds generated by the IPO go as planned) will go toward buying shares in RMCO LLC. This company is owned by Gail and Dave Liniger, the founders of REMAX.
Re/Max Holdings, will move the corporation to Delaware, and will trade on the New York Stock Exchange under the symbol RMAX.