The Real Deal New York

Newmark shoots for $615M IPO

Brokerage updates its prospectus with plan to issue 30 million shares of Class A common stock
December 05, 2017 06:00PM

Commercial brokerage NKF is being spun off from its parent BGC Partners

Newmark Knight Frank plans to raise $615 million through its initial public offering, according to an amendment filed to the company’s preliminary prospectus Monday.

The commercial brokerage will issue 30 million shares of Class A common stock at a price estimated to range between $19 and $22 per share, according to the New York Business Journal.

The midway point of those figures would work out to $615 million. Goldman Sachs, Bank of America Merrill Lynch, Citigroup, Cantor Fitzgerald, PNC Capital Markets, Mizuho Securities, Capital One Securities and Keefe, Bruyette & Woods are jointly running the book on the deal.

Newmark filed its preliminary prospectus with the U.S. Securities and Exchange Commission in late October. The company will trade under the NMRK stock symbol. The company generated $1.5 billion in revenues for the 12-month period ending June 30, 2017, according to its filings.

And it’s an opportune time to jump into the public markets, as publicly traded competitors like CBRE, JLL, Savills Studley, Colliers, HFF and Marcus & Millichap have seen their stock prices rise over the past year, as The Real Deal reported last month.

There have been fewer than 150 IPOs in the U.S. in 2017, ahead of the 105 that took place by this time last year, according to the publication. [NY Business Journal]Rich Bockmann