Fathom Realty, a cloud-based, full-service real estate brokerage, filed an IPO registration with the SEC under Fathom Holdings Inc., and recently announced its pricing of 3,430,000 shares of its common stock at a public offering price of $10 per share.
The stock is expected to begin trading on the Nasdaq Capital Market under the ticker symbol “FTHM” on Friday, July 31, 2020. The offering is expected to close on or about Aug. 4, 2020, according to the company. Net proceeds of the offering may be used for general corporate purposes, which may include financing growth, developing new services, and funding capital expenditures, acquisitions and investments.
Roth Capital Partners is acting as sole manager of the offering.
Fathom Realty will be offering an equity incentive program, according to the filing, whereby “all agents can receive, in lieu of cash commissions at the closing of sales transactions, company common stock grants that vest in three years.”
In a letter from Fathom Realty Founder and CEO included in the filing, Joshua Harley addresses the brokerage’s long-term viability even in uncertain times:
“We believe that in a down market, Fathom can really shine. Generally speaking, like in most businesses, there are only two ways to make more money in real estate: increase revenue or decrease expenses. In a slowing housing market, it is difficult to increase revenue when agents are fighting over a piece of a smaller pie. The only option is to outspend other agents to get more listings or to decrease expenses. Fathom makes both options possible.”
According to the filing, Fathom’s goal is to be “one of the leading 100-percent commission real estate brokerages in the United States while offering superior customer service, state of the art technology and a great company culture.”
“There’s an age-old saying that we subscribe to, which states that ‘whoever wants to be great, must first become a servant to all,'” said Harley during a recent interview for the company’s RISMedia Real Estate magazine cover story. “This speaks to servant leadership long before it was ever a catchphrase, and it’s also one of the most powerful leadership concepts in business once you understand why it matters and how it works.”
Harley also emphasized within the registration letter that Fathom was created to provide all the support, technology, tools and training an agent would otherwise get from a large traditional brokerage but at a small, flat fee per transaction. In addition, Harley said he instructs Fathom managers to always “focus first on serving our agents and helping them grow their business.”
“Fathom is not about me, which is why I didn’t name the company after myself,” added Harley in his interview. “I strive to be a servant-leader who our agents can look to and say without question that I care about them and place their needs first.”
For more information, please visit www.fathomrealty.com.