PARSIPPANY, NJ–Realogy Holdings Corp. was taken public this week by its owner, Apollo Global Management, which sold a 31% stake to reduce debt accrued during the home market collapse. The initial public offering raised $1.08 billion, according to a public statement. Realogy shares rose 25% in the first day of trading on the New York Stock Exchange, reaching $34.20, according to published reports.
Parsippany-based Realogy, which owns several of the largest national brokerage brands, sold 40 million shares for $27 each. Apollo, which acquired Realogy five years ago when residential real estate was still booming, retains a 50.2 % stake in the company, which in turn owns Coldwell Banker, Century 21, and other brokerages.
Realogy will use the proceeds of the stock sale to slim its debt to $4.5 billion, according to public regulatory filings. The shares were offered at $23-to-$27 each, and sold at the top of the range.
Apollo is reportedly set to raise a new fund of more than $10 billion. Its Berry Plastics Group conducted an initial public offering last week. Apollo invested $1.05 billion to buy out Realogy in 2007, according to data compiled by Bloomberg. Its stake is now valued at around $1.6 billion.
Goldman Sachs Group Inc. and JPMorgan Chase & Co. managed Realogy’s filing.
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