Realogy, the parent company of such global real estate brands as Coldwell Banker, Century 21 and ERA as well as a number of the premier service providers in real estate, executed a highly successful IPO (initial public offering) of stock today, capping what many are calling a "hollywood story" of recovery from a difficult few years of financing and a declining real estate market.
According to the Wall Street Journal: "The company sold 40 million shares at the high end of its prevailing $23-$27 range in a deal worth $1.08 billion, the third-largest U.S. IPO this year, according to Dealogic. Realogy's offering is also the biggest U.S. real-estate IPO on record..."
The stock, initially priced at the top of the expected range at $27 per share, reached $34.90 in the first day's trading - a successful venture by any standard. Asked about the impact of the IPO on the many real estate franchises around the world, Coldwell Banker Select Professionals partner Ryan Hess noted that "this market response is a vindication of all the franchise owners' faith in Realogy - in particular, the veteran real estate leaders at the helm such as Alex Periello, Richard Smith and Jim Gillespie. These guys have more than vindicated our trust in them". Hess' Coldwell Banker franchise extends throughout Central Pennsylvania with nearly 300 agents in 10 regional offices.
According to Bloomberg - “We’re happy with the outcome but we have a lot of work to do,” Chief Executive Officer Richard Smith said in a telephone interview today. “If you want broad housing exposure as a component of your portfolio, this is the only pure play for you.”
The stock closed at $34.00 on Thursday.