In its IPO filing, Re/Max said it plans to use about $27.3 million of net proceeds from the IPO to reacquire franchise rights in the Southwest and Central Atlantic regions. The remainder of the proceeds will be used to purchase common units in a holding company, RMCO LLC, which will be Re/Max’s sole asset.
Whether now is a good time for this IPO is arguable. Realogy Holdings Corp. (NYSE: RLGY), which owns the Century 21 real-estate brokerage chain, came public in October of last year and its stock, though up nearly 25% since then, has dropped from a peak of around $55 a share in mid-May to around $43.40 a share today.
Whether now is a good time for any real-estate firm to go public is at least arguable. On one hand, the U.S. housing market recovery appears to be solid if slow-moving, and expectations for an improved inventory of homes for sale is a good sign for real-estate brokers. On the other hand, rising house prices and rising mortgage rates have cooled some enthusiasm among potential buyers, at least temporarily.
Less than an hour after the market opened this morning Re/Max shares are trading up nearly 20% at $26.32.
Credit Card Companies Are Doing Something Nuts
Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.
It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.
We’ve assembled some of the best credit cards for users today. Don’t miss these offers because they won’t be this good forever.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
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