Sector Update: Consumer
Consumer shares are lower in pre-bell trading along with the broader stock market.
ReMax Holdings ( RMAX ) said it has priced its initial public offering of 10 million shares at $22.00 per share for approximately $1924.2 million in net proceeds.
The franchisor of real estate brokerage services said underwriters have a 30-day option to buy up to 1.5 million additional shares to cover any overallotments. The sock will start trading today on the New York Stock Exchange under the symbol RMAX.
Net proceeds from the share sale will be used to reacquire franchise rights in select markets, redeem preferred membership interests and to repurchase ownership stakes from existing shareholders.
And, a lawsuit over Lululemon's ( LULU ) sheer pants defects includes a Louisiana pension fund that is leading U.S. litigation accusing the company of hiding defects, Reuters reports.
LULU is down 1% at $73.09 in pre-market trade, trading in a 52-week range of $59.60 to $82.50.
The Louisiana Sheriffs' Pension & Relief Fund owned about $1.3 million of Lululemon stock and will handle the litigation on behalf of shareholders.
Finally, Coverage of apparel retailer Urban Outfitters, Inc. ( URBN ) has been initiated by analysts at FBR Capital with an Outperform and a $43 price target.
Share of URBN are unchanged in pre-market activity, and move within a 52-week range of $34.38 - $44.96.