Redfin is inching closer to its proposed initial public offering, with the so-called “technology-powered residential real estate brokerage” setting terms for its debut on the NASDAQ stock exchange.
In a filing with the SEC released today, Seattle-based Redfin said it plans to sell 9.23 million shares in the $12 to $14 per share range. That means Redfin would have a $1.35 fully-diluted market value if it were to price at the mid-point of the range, reports Pro Rata.
Redfin, which grew market share in 81 of 84 of its markets, estimates that it will raise $107.8 million from the public offering of stock based on a $13 per share offering price. It said it plans to use money from the stock sale for technology development, marketing and other corporate purposes, and noted that it could use the additional capital to acquire or invest in other companies.
As GeekWire reported last week, Redfin is very much looking to position itself as a tech-oriented company, part of a plan to command a higher valuation at the time of its IPO.
“If Redfin is a brokerage, making $256 million in revenues and losing tens of millions every year … it’s worth zip. Zilch. Zero. Nada,” wrote Robert Hahn, a management consultant at 7DS Associates who writes regularly about real estate and technology.. “If Redfin is a technology company that happens to make money from commissions … it’s worth $3 billion or so (or more!)”
It would mark the first IPO from a Washington state technology company so far this year.
Redfin helped people buy 75,000 homes last year, with the company generating $267 million in revenue last year. It continues to lose money, posting a loss of $22 million last year.
However, it also has been buoyed by a strong housing market in the U.S. as this graphic by Seattle Bubble author Tim Ellis shows.
Redfin Real Estate Performance – 2006-2008 Markets: Seattle, San Francisco, Los Angeles, Boston, Washington, D.C., and Chicago