Underwriters of a secondary stock offering by Realogy Holdings Corp. fully exersised their option to buy 5.25 million shares, the company said today, bringing the total offering to 40.25 million shares at $44 per share, or $1.77 billion before expenses.
Realogy will not see any of the proceeds of the secondary offering. The shares were sold by funds associated with Apollo Global Management LLC, which took the company private in 2006 and continue to hold 25.2 million shares of Realogy common stock, or 17 percent of shares outstanding.
Costs associated with its October initial public offering pushed Realogy Holdings Corp. into the red during the fourth quarter, although adjusted earnings were up 61 percent from a year ago, to $167 million.
Realogy’s IPO helped the real estate brokerage and franchising giant reduce its debt by $3.1 billion. But the company posted a $292 million fourth-quarter loss after recognizing $400 million in IPO-related costs, $18 million in debt extinguishment charges, and $42 million in depreciation and amortization.