Trulia shares climb in debut on NYSE
SAN FRANCISCO (AP) — Shares of Trulia Inc. jumped more than 40 percent in their first day of trading on the New York Stock Exchange, marking one of the biggest gains in a trading debut in recent months.
The San Francisco-based real estate website operator's shares opened at $22.10 Thursday morning, after pricing at $17 the previous day. By late morning, the shares were up $7, or 41 percent, to $24 after trading as high as $24.25.
Trulia, which is trading under the symbol "TRLA," was one of five companies set to make its market debut on Thursday.
The company and its shareholders sold 6 million shares in the IPO for proceeds of about $102 million. Trulia itself sold 5 million shares, and won't receive proceeds from stockholders' sales of the remaining 1 million shares. The banks managing the IPO may buy another 900,000 shares if demand is high.
Earlier this month, Trulia estimated its shares would sell for $14 to $16 each. The $17 IPO price indicates solid demand for the offering.
The morning rise puts Trulia on track to roll up the biggest IPO gain since teen retailer Five Below Inc. went public on July 19 and closed up 56 percent after its first day on the market.
Trulia said it plans to use the net proceeds from the offering for working capital and general corporate purposes, along with the possible acquisitions of other businesses.
Trulia operates the website Trulia.com and mobile apps. It allows people to research home listings and neighborhoods, while helping real estate agents market their listings. Its database includes 4.5 million homes for sale and rent.
In the six months ended June 30, the site had 22 million unique visitors and 360,000 active real estate professionals, with 21,544 of those paying subscribers. Most of the company's revenue comes from sales of subscription products to real estate professionals. Trulia also generates revenue from ads.
In 2011, the company posted a loss of $6.2 million on $38.5 million in revenue. In the six months through June 30, its loss came to $7.6 million on revenue of $29 million.
Zillow Inc., which also operates a real estate information website, went public in July 2011. It marked one of the best performing Internet IPOs in recent years, with its shares more than doubling in the little over a year since.