Redfin Closes in on IPO

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Redfin has registered an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). The company expects to price its 9.32 million shares in the range of $12 to $14 per share, with an overallotment option for an additional 1.38 million shares. At the maximum price, the entire offering is valued up to $148.62 million. The company intends to list its shares on the Nasdaq under the symbol RDFN.

The underwriters for the offering are Goldman Sachs, Allen, Merrill Lynch, RBC Capital Markets, Oppenheimer and Stifel.

This firm is a technology-powered residential real estate brokerage. Redfin represents people buying and selling homes in over 80 markets throughout the United States. Its mission is to redefine real estate in the consumer’s favor.

Its homebuyers saved on average roughly $3,500 per transaction in 2016. And the firm charges most home sellers a commission of 1.0% to 1.5%, compared to the 2.5% to 3.0% typically charged by traditional brokerages.

Highlights from the past year include the following:

  • The firm helped customers buy or sell more than 75,000 homes worth more than $40 billion through 2016.
  • It gained market share in 81 of its 84 markets from 2015 to 2016.
  • Redfin drew more than 20 million monthly average visitors to its website and mobile application in the first quarter of 2017, 44% more than the first quarter of 2016, making it the fastest-growing top-10 real estate website.
  • The company earned a Net Promoter Score, a measure of customer satisfaction, that is 32% higher than at competing brokerages and a customer repeat rate that is 37% higher than at competing brokerages.
  • It sold Redfin-listed homes for approximately $3,000 more on average compared to the list price than competing brokerages’ listings in 2016.

Redfin currently has no specific plans for the use of the net proceeds that it will receive from this offering.