While a number of tech firms are opting to delay their IPOs within the face of less-than-enthusiastic market demand for his or her shares, actual property tech firm Compass cast forward and went public right this moment. After pricing its shares at $18 apiece final evening, the low finish of a lowered IPO worth vary, Compass shares closed the day up just below 12% at $20.15 apiece.
TechCrunch caught up with Compass CEO and founder Robert Reffkin to talk about his firm’s debut within the market’s suddenly choppy waters for tech and tech-enabled debuts.
Regarding whether or not Compass is a tech firm or a actual property brokerage, Reffkin — who raised the comparability himself — used the chance to notice that firms like Amazon or Tesla aren’t just one factor. Amazon is a logistics firm, an e-commerce firm, a cloud-computing business and a media concern all on the identical time.
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The argument was ok for Compass to promote 25 million shares — a lowered quantity — at its IPO worth for a gross value $450 million. That, the CEO mentioned, was his firm’s purpose for its public providing.
Sparing TechCrunch the standard CEO line about an IPO not being a vacation spot however merely one cease on a longer journey at that juncture, Reffkin as an alternative argued that placing 9 figures of capital into his firm was his goal, not a specific worth or ensuing valuation.
That may sound easy, however as Kaltura and Intermedia Cloud Communications have pushed their IPOs again, it’s a bit gutsy. Still, if financing was the important thing goal, Compass did reach its debut. And it was even rewarded with a neat little bump in worth throughout its first day’s buying and selling.
Reffkin did affirm to TechCrunch what we’ve been reporting recently, particularly that the IPO market has modified for the more serious in current weeks. He described it as “challenging.”
So why go public now when there may be a lot capital out there for personal firms?
Reffkin cited a few numbers, however centered his view round having what he construes as the “right team” and the “right results.” We’ll get a bit extra on the latter when Compass stories its first set of public earnings.
For now, it’s a firm that braved stormier seas than we’d have anticipated to see so quickly after a blistering first few months of the yr for IPOs.
And as a result of I’d additionally carry her alongside if I ever took a firm public, right here’s the corporate’s founder and CEO along with his mom: