- Last Updated: 12:46 AM, June 9, 2012
- Posted: 11:09 PM, June 8, 2012
The parent of Realogy filed to raise as much as $1 billion in an initial public offering, five years after Apollo Global Management LLC took the real estate broker private in the largest buyout on record for the industry.
Domus Holdings, owner of Realogy, didn’t specify the price or the number of shares on offer yesterday in a regulatory filing.
Apollo, the New York private-equity firm run by Leon Black, will hold a majority of the voting common stock after the offering, the filing shows.
Realogy, which runs the Century 21, Coldwell Banker and Sotheby’s International Realty brands, is going public as the US housing market shows signs of hitting bottom amid the worst real estate collapse since the 1930s. While trends suggest a recovery for real estate, a weak stock market is sapping demand for new equity offerings, according to Jack Ablin of BMO Harris Private Bank.
“The housing market and the IPO market are certainly different,” said Ablin, who helps oversee about $60 billion of assets as the firm’s chief investment officer in Chicago. “They’re certainly bucking the trend by bringing this deal.”
The real estate services provider announced IPO plans even after US stocks sank to a six-month low this month and demand for offerings dried up. No companies have completed or set pricing terms for US IPOs since Facebook raised $16 billion in its May 17 sale and saw its stock plummet afterward.