RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
RISMedia
No Result
View All Result

Compass Inc. Ups the Ante With $10B IPO Valuation

Home Uncategorized
By Jordan Grice
March 23, 2021
Reading Time: 3 mins read
4

New York-based Compass Inc. wants to up the ante when it goes public.

The SoftBank-backed real estate startup is reportedly seeking a $10 billion valuation in its U.S. IPO when it finally hits The New York Stock Exchange. Compass announced Tuesday that it plans to offer 36 million shares of its common stock at a public offering price of $23 to $26, according to its recently updated SEC filing. 

The company stands to raise $936 million when it goes public at that price. According to the filing, proceeds from the sale of shares will go toward “working capital and general corporate purposes.” A portion of the sale of shares may also go toward acquisitions or investments, according to the filing. 

Compass does not currently have any binding agreements or commitments for acquisitions “outside the ordinary course of business,” according to the filing.

Goldman Sachs, Morgan Stanley, Deutsche Bank, UBS Investment Bank and Barclays are underwriters and will have the option to purchase an additional 5.4 million shares, according to the filing. 

Compass has touted offerings of advanced technology, marketing tools, CRM software and more to recruit thousands of agents since launching in 2012.

“At Compass, we are agent-obsessed,” wrote Compass Inc. CEO Robert Reffkin in a letter submitted with the IPO. “We’ve built a business completely aligned with our agents: When agents succeed, Compass succeeds. Our commitment to the agent is not contingent and is not temporary; it is foundational to our vision, our strategy and our success—and it always will be.”

One of the company’s recent tactics has been its Agent Equity Program, which allows agents to invest a share of their commissions in exchange for stock options.

According to the filing, Compass is offering an updated version of the program that will go into effect “immediately before the effectiveness of the registration statement of which this prospectus forms a part.”

“The 2021 Plan authorizes the award of both incentive stock options, which are intended to qualify for tax treatment under Section 422 of the Code, and nonqualified stock options, as well for the award of restricted stock awards, or RSAs, stock appreciation rights, or SARs, restricted stock units, or RSUs, and performance and stock bonus awards,” read the filing

The New York-based brokerage’s revenue rose to $3.72 billion in 2020 from $2.39 billion the year prior—roughly a 56% YoY increase. 

Compass struggled in the early days of the pandemic, which resulted in the firm laying off 15% of its employees. The company reported net losses of $388.0 million and $270.2 million in 2019 and 2020, respectively.

According to a Bloomberg article, SoftBank-related funds own about 35% of the Class A shares of Compass, while Reffkin, who has 2.4% of the Class A shares, currently owns all of the Class C shares.

Reffkin’s holdings account for 46% of the voting power of Compass’s outstanding capital stock. According to the filing, that could jump up to 69% if he “vests and settles in certain equity awards, including specific performance-based equity awards, outstanding at the time of the completion of this offering.”

“As a result, Mr. Reffkin will be able to determine or significantly influence any action requiring the approval of our stockholders, including the election of our board of directors, the adoption of amendments to our certificate of incorporation and bylaws, and the approval of any merger, consolidation, sale of all or substantially all of our assets, or other major corporate transactions,” the filing said. 

This is a developing story. Stay tuned to RISMedia for more updates.

Jordan Grice is RISMedia’s associate content editor. Email him your real estate news ideas at jgrice@rismedia.com.

Tags: CompassCompass IPOIndustry NewsIPOReal Estate Industry NewsStock Market
ShareTweetShare

Jordan Grice

Jordan Grice is RISMedia’s associate online editor. Email him your real estate news to jgrice@rismedia.com.

Related Posts

Should You Install Wallpaper If You Plan to Sell Your House in a Few Years?
CRISIS-Friendly

Should You Install Wallpaper If You Plan to Sell Your House in a Few Years?

June 15, 2022
RISMedia Honors New-Agent Success With Annual ‘Real Estate Rookie of the Year’ Award
Uncategorized

Only 2 Weeks Left to Nominate a Standout Agent as ‘Rookie of the Year’

June 15, 2022
How to Maximize Editorial Coverage in Your Content Marketing Strategy
Uncategorized

How to Maximize Editorial Coverage in Your Content Marketing Strategy

June 6, 2022
New Report Ranks Best Cities for Renters in 2022
Uncategorized

New Report Ranks Best Cities for Renters in 2022

May 23, 2022
10 Reasons to Join Your Peers in Washington this September
Uncategorized

10 Reasons to Join Your Peers in Washington this September

May 6, 2022
What Are Soft and Hard Mortgage Prepayment Penalties?
CRISIS-Friendly

What Are Soft and Hard Mortgage Prepayment Penalties?

March 31, 2022

Comments 4

  1. David Prince says:
    1 year ago

    How is a real estate company that lost $270,000,000 in the strongest real estate market in decades worth $10 Billion??

    Reply
  2. Kenn Brown says:
    1 year ago

    David Prince: It’s all about staging….

    Reply
  3. Paul Murphy says:
    1 year ago

    Fastest growing brokerage – only because they are over agents to jump ship and join Compass! What  happens when the lockup’s expire the attraction of sexy pre IPO stock disappears and agents leave . 
    Last thing you want is all your compensation tied up in one asset class.
    Good Luck !!☘️☘️☘️

    Reply
  4. Barbara Watkins says:
    1 year ago

    Compass pays agents up front to come with their company.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tip of the Day

Break a Leg: How Acting Techniques Can Enhance Your Pitch

Authenticity, emotion and empathy are all a big part of a successful client presentation, and actors have the answers. Read more.

Business Tip of the Day provided by
REGISTER NOW

Recent Posts

  • Creative Marketing Ideas to Move Your Listings Faster
  • The July Issue of Real Estate Magazine Is Now Live
  • First Guaranty Mortgage Corp. Tacks on Massive Layoffs With Bankruptcy Filing

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.