The parent company of Realogy Corp., the Parsippany-based real estate services firm, has announced plans to raise $1 billion through a proposed initial public offering of common stock.
Domus Holdings Corp. said today it filed a registration statement for the IPO with the federal Securities and Exchange Commission, with plans to use the proceeds to repay debt. The number of shares to be offered and price range for the $1 billion offering have not been determined, the firm said in a news release.
Realogy, which has about 1,300 employees in New Jersey, owns and franchises real estate brokerage brands like Century 21, Coldwell Banker and Sotheby's International Realty. The global firm also has business units specializing in corporate relocation and title and settlement services.
Domus' announcement comes as the housing market shows glimmers of hope after several years in the doldrums. In an April interview with NJBIZ, Realogy CEO Richard A. Smith said he was encouraged by slightly increasing sale prices, for-sale homes that are receiving multiple bids and other positive signs in the market.
"People have been sitting on the sidelines for almost five years now and they're tired. And they've got to make a decision," Smith said. "Their households have increased in size, they're tired of renting and they've made a decision, given those local market dynamics and very low mortgage rates, to pull the trigger."
Now owned by Apollo Management L.P., a private equity firm, the company has been publicly traded in the past. Realogy is a spinoff of Cendant Corp., the former real estate, travel and hotel conglomerate that broke up its business units in 2006.
The company had considered leaving New Jersey but is staying in the state, thanks in large part to an incentive package from the Economic Development Authority. The firm plans to move to a new 270,000-square-foot headquarters, in Madison, by 2013.