Marcus & Millichap Goes Public, Stays Mum on Senior Housing Details

Real estate services firm Marcus & Millichap, Inc. (NYSE: MMI) announced last week its initial public offering, but kept details regarding the company’s senior housing business segment on the hush. 

The national real estate investment services firm announced Thursday its IPO of 6,000,000 shares of its common stock at a price to the public of $12.00 per share. 

It is unknown how the move into the public arena will affect the company’s senior housing business segment.


“At this time the firm cannot discuss what its IPO means for its senior housing business line, or how the IPO is expected to support its position in senior housing, as we are still in a quiet period,” said Gina Relva, public relations manager at Marcus & Millichap, in an email to SHN. 

The shares began trading on October 31, 2013, on the New York Stock Exchange under the ticker symbol “MMI.”

By the end of the market’s close on the announcement day of October 31, the stock closed at $13.42.


As of November 4, the stock closed at $14.02. 

Of the shares in the offering, 2,726,587 shares are being offered by Marcus & Millichap, Inc. and 3,273,413 shares are being offered by selling stockholders. 

Additionally, the company has granted the underwriters a 30-day option to purchase up to an additional 900,000 shares of common stock on the same terms and conditions.

Total net proceeds to the company from the offering, after deducting the underwriting discount and estimated offering expenses, will be approximately $34.6 million, the company stated in a release.

Marcus & Millichap intends to use the net proceeds from the offering for general corporate purposes, including capital expenditures and working capital to expand its services and potential acquisitions of real estate businesses or companies. 

While Marcus & Millichap declined to disclose how much the company raised in its IPO, the Silicon Valley Business Journal reports the amount to be $72 million

In 2012, Marcus & Millichap closed 6,149 transactions for a total volume of $22 billion—the highest of any commercial real estate brokerage firm. 

Citigroup and Goldman, Sachs & Co. are acting as joint book runners for the offering, while JMP Securities and William Blair are acting as lead managers.

Written by Jason Oliva

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