Compass has sought underwriters for a potential public offering that would be one of the most recognized IPOs in the residential world.
The company, backed by SoftBank, which tore down traditional brokerage eight years ago, hired Morgan Stanley and Goldman Sachs as underwriters, Bloomberg said. It examines a potential IPO sometime in 2021.
Founded in New York in 2012, Compass has raised more than $ 1.5 billion from investors, including SoftBank, Fidelity, Wellington Management, Dragoneer and others. After raising $ 370 million in July 2019, Compass was valued at $ 6.4 billion – a character that has led the opponent to question whether he is overrated.
Compass is considered a real estate company that uses technology to streamline agents. According to research firm Real Trends, it currently has more than 18,000 agents who sold $ 91.2 billion in real estate last year.
Compass co-founders for years Robert Reffkin and Ori Allon said the IPO was likely, but claimed they were not in a hurry with the public.
Like other residential companies, Compass has been benefiting from faster-than-expected housing turnover in recent months. The company, which was forced to lay off 15 percent of its employees in March, said it recorded record sales in June, July and August.
Meanwhile, the IPO market has picked up with other real estate players about to release, including Airbnb, Opendoor and Porch.com.
In the last months Compass has added independent board members including LinkedIn CFO Steve Sordell and Charles Phillips, former president of Oracle.
[Bloomberg] – EB Solomont