Real estate tech company, Compass office, depicting a valiant IPO filing

Overview

On March 1, real estate technology company, Compass, released its S-1 in anticipation of an IPO on the New York Stock Exchange. The company later filed an amended S-1 on March 31 in which it reduced its price target from US $23–US $26 to US $18–US $19 and the stock offering from 36 million to 25 million shares. As a result, Compass amassed a pre-IPO valuation of approximately US $7 billion, a drop from the original target of around US $10 billion. 

Although several tech companies chose to postpone their IPOs due to unenthusiastic market demand for their shares, real estate tech company Compass valiantly went public on April 1, 2021.  After pricing its shares at US $18 each on March 31, 2021, the lower class of its decreased IPO price target, Compass was rewarded on its first day of trading as its shares increased by 12%, closing at US $20.15 apiece.

Image of Compass building

Co-founder and CEO of Compass Robert Reffkin described the IPO market in recent weeks as “challenging”. This, however, begs the question, “why go public now, especially with the surge in capital for private companies?” To answer this, Reffkin referenced a few financial statistics but ultimately concluded by revealing that he had an “excellent team” delivering “excellent results”, which is the basis of his confidence in filing for IPO despite the current state of the market. More detailed information would be provided upon the announcements of the company’s first set of public earnings. For now, Compass has shown a calculated, confident, and noteworthy risk by filing for IPO regardless of the blistering performance of the IPO market in the first few months of the year.

Company profile

Logo of Compass

Compass is a real estate tech exited unicorn that provides an online platform for renting, selling, and buying real estate assets. The company’s end-to-end platform manages the complete buying and selling workflow by matching the industry’s top talent with the needed technology to make the search and sell experience seamless and exceptional. Compass operates in over 22 locations across the United States, including Los Angeles, New York, Chicago, Boston, The Hamptons, San Francisco, Washington D.C., South Florida, Santa Barbara and Montecito, Seattle, and San Diego, to mention a few. The company was founded in 2012 by Ugo Di Girolamo, Robert Reffkin, and Ori Allon, with its headquarters in New York, United States.

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