Investors in tech-driven real estate brokerage Redfin were rewarded with a surge in its share price Friday as the company went public
Investors in tech-driven real estate brokerage Redfin were rewarded with a surge in its share price Friday as the company went public.
The IPO was priced at $15 per share for the 9.2 million offered and closed at $21.70, a 44.7% rise on the first day of trading on the Nasdaq. That meant a $6.70 increase for early investors.
The gain was impressive given the tight inventory which continues to restrict home sales nationwide, and considering a generally negative trading day Friday which saw the Nasdaq and S&P500 indexes close lower.
"Redfin has been redefining the real estate industry since its inception, and we are proud to have them join Nasdaq's family of innovative companies as they continue to disrupt the market with new and unprecedented ideas," said Nelson Griggs, Executive Vice President, Head of Global Listings, Nasdaq.
Speaking to Fortune.com, Redfin CEO Glenn Kelman hinted that the firm may look to grow through acquisition.
He said that the almost $180 million cash brought in by the IPO isn’t immediately required but may be saved “for a rainy day” before adding “in case there’s a strategic acquisition we want to make.”
On the subject of profits, Mr Kellman said it was a “year or two out” but said the firm is on a good track.
Speaking of comparisons with Zillow, he said that while the competitor is “like the Google of real estate” – providing listings before connecting with a traditional broker – Redfin is “like the Amazon” by providing the whole deal.
The IPO was priced at $15 per share for the 9.2 million offered and closed at $21.70, a 44.7% rise on the first day of trading on the Nasdaq. That meant a $6.70 increase for early investors.
The gain was impressive given the tight inventory which continues to restrict home sales nationwide, and considering a generally negative trading day Friday which saw the Nasdaq and S&P500 indexes close lower.
"Redfin has been redefining the real estate industry since its inception, and we are proud to have them join Nasdaq's family of innovative companies as they continue to disrupt the market with new and unprecedented ideas," said Nelson Griggs, Executive Vice President, Head of Global Listings, Nasdaq.
Speaking to Fortune.com, Redfin CEO Glenn Kelman hinted that the firm may look to grow through acquisition.
He said that the almost $180 million cash brought in by the IPO isn’t immediately required but may be saved “for a rainy day” before adding “in case there’s a strategic acquisition we want to make.”
On the subject of profits, Mr Kellman said it was a “year or two out” but said the firm is on a good track.
Speaking of comparisons with Zillow, he said that while the competitor is “like the Google of real estate” – providing listings before connecting with a traditional broker – Redfin is “like the Amazon” by providing the whole deal.
