COMP Stock IPO: 9 Things to Know as Compass Starts Trading Today


Today, shares of Compass (NYSE:COMP) began trading after their highly anticipated IPO. Currently, investors in COMP stock have booked a paper gain of more than 18% at the time of writing. Indeed, it appears investors are interested in this software play on the real estate space.

The Compass (COMP) office in Seattle, Washington.

Source: Tada Images /

The real estate sector is one that has been screaming for innovation for some time. Realtor fees have continually dropped, due to structural shifts toward technology-oriented solutions in a relatively old-school, traditional sector. Accordingly, companies like Compass seek to further disrupt this sector. Its suite of software products provide time savings to realtors and allow realtors to better serve their clients.

Lower fees and better service? That sounds good to me.

For those looking for more information on the deal and what Compass does, here’s a list of a few key things to know about this stock.

Why the COMP Stock IPO Is a Big Deal Today

Investors considering the Compass IPO may want to know the following things about this new listing:

  • Compass’ IPO has been a big hit among investors bullish on the transformative potential technology can have in the real estate sector. Indeed, the aforementioned benefits of Compass’ platform have enticed both users and investors to consider these shares early on.
  • Currently, more than 19,000 real estate agents use Compass’ platform.
  • The company’s IPO raised $450 million at the low end of its range.
  • Accordingly, the company priced its 25 million shares at $18 apiece. Investors buying in on the IPO have seen shares balloon above the $21 level. Initially, shares were expected to be priced in the $18-$19 range.
  • This IPO was backed by Softbank (OTCMKTS:SFTBY) and Discovery Capital Management. Additionally, Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS),and Barclays (NYSE:BCS) led the deal. Accordingly, it appears the company’s backers have provided another investment thesis for IPO investors today.
  • On a fully diluted basis, Compass’ initial valuation was set at around $9 billion. However, at the time of writing, that valuation has increased to more than $10 billion.
  • Compass facilitated residential real estate transactions amounting to more than $150 billion.
  • Accordingly, this company is estimated to have a market share of around 4% in the U.S. residential real estate market.
  • Additionally, Compass’ revenue growth has enticed investors to consider this stock. Indeed, year-over-year growth of 56% to more than $3.7 billion is very strong.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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