DENVER (AP) -- Re/Max Holdings has raised $220 million in an initial public offering of its common stock.
The real estate brokerage, which filed plans in August to go public, priced the offering of 10 million shares at $22 each. That is above the projected range of $19 to $21 per share.
Re/Max is giving the underwriters a 30-day option to buy up to an additional 1.5 million shares to cover any excess demand.
The company anticipates about $194.2 million in net proceeds, after underwriting discounts and commissions and estimated offering expenses. Re/Max plans to use the proceeds to reacquire regional Re/Max franchise rights in some markets, redeem preferred membership interests and buy back ownership stakes from existing shareholders.
Re/Max, founded in 1973, is a franchisor of real estate brokerage services. It recruits agents and sells franchises and franchising rights to those who want to operate under the RE/MAX brand. The company has more than 90,000 agents and 6,300 offices around the world, but gets the bulk of its revenue from the U.S.
In 2012, the Denver company reported net income of $18 million on revenue of $143.7 million.
Re/Max is one of several real estate-related companies to go public recently. Realogy Holdings, which operates real estate brokerages under brands like Century 21, Coldwell Banker and Sotheby's International Realty, debuted in October. Real estate website operator Trulia went public in September and online real estate information company Zillow began selling shares in 2011.
Re/Max is expected to start trading on the New York Stock Exchange on Wednesday under the "RMAX" ticker symbol.
