BGC Partners and Newmark Group Fully Exercise Overallotment Option of IPO

The option enables the additional purchase of 3 million Class A common stocks.

The underwriters of Newmark Group’s IPO have exercised their option to purchase an additional 3 million shares of Newmark’s Class A common stock.

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The option is exercised at the initial public offering’s price of $14.00 per share. Newmark’s Class A common stock has been trading on the NASDAQ since December 15, 2017.

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Now that the option has been exercised and closed, the net earnings received by Newmark from the IPO have accumulated to roughly $298.3 million. This total has already been adjusted to reflect all underwriting discounts, commissions, and estimated expenses from the offering itself. Following the closing of the option, there are 138.6 million shares of Newmark’s Class A common stock, approximately 16.6% of which are currently held by public shareholders. Meanwhile, public shareholders own 9.8% of the total number of Newmark’s 233.6 million fully diluted shares.

Headquartered in London and New York, BGC Partners is a leading global brokerage company providing services to the financial and real estate markets. The company “provides a wide range of services including trade execution, broker-dealer services, clearing, processing, information and other back office services.” Newmark’s IPO took place less than 3 months following the announcement of BGC Partners’ appointing of Shawn McLoughlin as CEO of BGC Financial for the Americas region, in September of this year. One month prior to becoming CEO, the company disclosed increased revenues for Q3 reaching $827 million, albeit with lower profit margins.

Newmark is a “full-service commercial real estate services business that offers a complete suite of services and products for both owners and occupiers across the entire commercial real estate industry through brands, including Newmark Knight Frank, Newmark Cornish & Carey, Apartment Realty Advisors (“ARA”), Computerized Facility Integration, and Excess Space.”

Newmark’s IPO was led and managed by various well known and prestigious financial institutions. Goldman Sachs and Merril Lynch “acted as joint book-running managers,” while “Cantor Fitzgerald & Co. acted as a book-runner for the offering.” The US Securities and Exchange Commission has received a registration statement for the securities relating to Newmark Group. The statement has been made public and can be viewed on the SEC’s official website.

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