- Kim Kyung-Hoon/Reuters
- Cushman & Wakefield shares jumped by as much as 7% in the company’s initial public offering (IPO) on Thursday.
- The company plans to use the bulk of the proceeds from its IPO to pay down debt.
- It operates more than 3.5 billion square feet of commercial real estate and employs about 48,000 people in 70 countries.
Shares of the commercial-real-estate giant Cushman & Wakefield rose by as much as 7% in their trading debut on Thursday.
In a regulatory filing on Wednesday, the company said it priced the shares on sale at its initial public offering at $17, the midpoint of its estimated range, and raised $765 million. It sold 45 million shares.
Cushman & Wakefield operates more than 3.5 billion square feet of commercial real estate and employs about 48,000 people in 70 countries, the filing said. It posted a net loss of $220.5 million last year on revenue of $6.92 billion. Its revenues have increased every year since 2015.
The company had $3.1 billion in debt last year, and warned potential investors that its “substantial indebtedness” may make it more vulnerable to competitors.
Cushman & Wakefield does not plan to pay out dividends to investors “for the foreseeable future.” It will use the bulk of its IPO proceeds to reduce this debt.
Cushman & Wakefield’s IPO follows the Nasdaq listing in December by its fellow commercial brokerage Newmark Knight Frank.
The stock is listed on New York Stock Exchange with the ticker CWK. Morgan Stanley, JPMorgan, Goldman Sachs, and UBS were the lead underwriters of the IPO.
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