Shares for residential brokerage company Realogy broke through the initial asking price of $27 a share and remained higher all day, closing at $34.45 per share.
This was the first day of trading on the New York Stock Exchange for the Parsippany, N.J.-based company that is the parent of Corcoran and Citi Habitats, and is the largest residential brokerage company in the United States by revenue.
The company sold 40 million shares with an offer price of $27 per share, raising $1.08 billion, making it the third largest IPO of the year, the Wall Street Journal reported.
Investors bought shares with the expectation that the housing market is recovering, company CEO Richard Smith said.
In addition to Corcoran and Citi Habitats, Realogy owns selected offices under various other brands, including Sotheby’s International Realty, ERA and Coldwell Banker through its NRT division. It also acts as a franchisor for Coldwell Banker, Coldwell Banker Commercial, Better Homes and Gardens Real Estate, Sotheby’s, Century 21 and ERA offices. [WSJ]