LJ Hooker has commenced a pre-initial public offering funding round, sources told the Australian Financial Review Street Talk column.
It's understood the firm is looking to raise about $20 million.
Citigroup and Morgans is advising on the deal.
The group has more than 700 franchise offices, an iconic real estate firm launched by Sir Leslie Hooker in 1928.
The AFR noted fund managers have been asked to compare LJ Hooker to Realogy Franchise Group, the $US5.5 billion parent company of CENTURY 21, ERA, Coldwell Banker, and Sotheby's International Realty which trades on a forward profit multiple of about 26 times.
It noted LJ Hooker franchisees had in the past year sold more than $19 billion worth of property and increased the pool of properties under management to about 130,000.
Sources suggested any ASX listing would not take place until early 2016.