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Update: Newmark IPO Closes Above Revised Asking Price

CRE's Newest Publicly Traded Services Company Closes IPO 9.5% Above Friday Share Price
December 18, 2017
Newmark and BGC Partners executives celebrate the opening of Newmark Group's IPO by ringing the opening bell at Nasdaq on Friday.
Credit: Nasdaq Stock Market



Newmark Group, Inc. (Nasdaq: NMRK) today completed its initial public offering of 20 million shares of common stock, generating a 9.5% return after downsizing its targeted IPO before trading began Friday morning.

Shares of Newmark, which is spinning off from its publicly traded parent BGC Partners, Inc. (Nasdaq: BGC), closed at $15.34 on Tuesday, a gain of 5% from Monday's closing price. The New York City based company, which includes Newmark Knight Frank, scaled back its targeted initial public offering about 53% before the stock's Friday debut, offering 20 million shares sold at between $14 and $15 per share rather than the oroginally planned 30 million shares priced at between $19 and $22 per share.

At the close of the IPO, Newmark public shareholders owned about 14.7% of the Class A common stock, with 135.6 million shares outstanding, which could rise to 16.6% or 138.6 million shares outstanding if underwriters fully exercise their option to buy up to an additional 3 million shares of its Class A common stock at the IPO price over the next 30 days.

On a fully diluted basis, Newmark's public stockholders owned about 8.7% of Newmark's 230.6 million shares outstanding, or approximately 9.8% of Newmark's 233.6 million fully diluted shares outstanding if the underwriters exercise in full their option to purchase additional shares of Newmark's Class A common stock. Fully diluted shares are the total number of shares if all convertible securities of a company were exercised.

BGC Partners Chairman Howard W. Lutnick and Barry M. Gosin, chief executive office of NKF, rang the opening bell at the Nasdaq MarketSite in Times Square on Friday in honor of the IPO opening. BGC will retain all of Newmark's issued and outstanding Class B common stock shares following the offering's completion.

Goldman Sachs, BofA Merrill Lynch, Citi, Cantor Fitzgerald, PNC Capital Markets, Mizuho Securities, Capital One Securities and Keefe Bruyette Woods are the joint book runners on the IPO.

Editor's note: This update adds Tuesday's IPO closing price.

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