A recovery in the U.S. housing market has helped competitor Realogy Holdings Corp gain about 60 percent in market value since it went public in a $1.1 billion IPO last October. Realogy is backed by private equity firm Apollo Global Management.
Home improvement consultant RIHI Inc owns about 85 percent stake in Re/Max. RIHI’s stake would fall to about 61 percent if the underwriters exercise their full option, Re/Max said in a filing.
RIHI is owned by David Liniger and Gail Liniger, who currently serve on Re/Max board as chairman and vice chairman.
Private equity firm Weston Presidio, which holds the remaining 15 percent, will sell its entire stake.
Re/Max said it would sell 10 million of its Class A common stock in the offering, for which Morgan Stanley, BofA Merrill Lynch and JP Morgan are the lead underwriters.
Re/Max’s net profit rose to $18 million in the year ended Dec. 31, 2012 from $13.9 million. Revenue rose about 4 percent to $143.7 million.
Avik Das is a reporter for Reuters News in Bangalore