Online Real Estate Firms Jockey for Position (TRLA, Z, MOVE)
Mar 11th 2013 10:35AM
Updated Mar 11th 2013 4:50PM
Real estate information service Trulia Inc. (NYSE: TRLA) today filed an amended Form S-1 with the Securities and Exchange Commission to sell 5.25 million shares in a secondary offering. The company plans to offer 3.5 million shares at around $30.44 a share, the closing price of the stock this past Friday. An additional 1.75 million shares are being offered by current shareholders J.P. Morgan Securities and Deutsche Bank Securities.
Trulia expects net proceeds of about $100.3 million, or up to $115.4 million if the underwriters exercise their purchase option. The company plans to use the proceeds for working capital and general corporate purposes, and expects to use "some or all of such net proceeds to acquire or invest in complementary businesses, products, services, technologies, or other assets."
The competition in the online real estate sector is fierce, with Trulia, Zillow Inc. (NASDAQ: Z) and Move Inc. (NASDAQ: MOVE), which operates the Realtor.com site, all competing for eyeballs. Move announced a redesign of the Realtor.com website this morning and is promoting the speedy updates to its listings that are available through its smartphone apps. Zillow, too, has beefed up its mobile apps, and this is the likeliest target for Trulia's hoped-for new cash.
Shares of Trulia are down about 1.3% this morning, at $30.06 in a 52-week range of $14.69 to $38.22.
Filed under: 24/7 Wall St. Wire, Housing, Internet, Secondary Offering Tagged: featured, MOVE, TRLA, Z