Shares of online real estate broker Redfin hit the public market on Friday in a $138.5 million IPO.
The stock popped more than 30 percent when it opened for trading mid-morning.
The stock was listed on the Nasdaq under the symbol “RDFN.” The 9.23 million share offering priced at $15 a share, above the expected price range of $12 to $14 apiece.
Redfin specializes in buying and selling homes and uses a mobile app to do tasks like schedule home tours and suggest listings.
In its prospectus, Redfin differentiates itself from other tech companies that use only the internet and mobile apps to connect consumers with businesses.
“In an age when the technology economy is increasingly divided from the rest of the world,” the filing says, “we have hired our own real estate agents, not as a disposable labor force, but as partners in this business, with a salary, health-care benefits and the opportunity to earn stock options.”
Revenue in 2016 jumped 43 percent to $267.2 million from $187.3 million a year earlier. The company’s net loss narrowed to $22.5 million from $30.2 million. Redfin calls itself a “technology-powered real estate broker.” It’s the human element that leads to a gross margin of 31 percent, much lower than most big internet companies.
Redfin shares surge more than 30% in 8.5 million real estate tech IPO