Trulia Prices IPO of 6 Million Shares at $17 Each
Real estate website operator Trulia said Wednesday priced its planned initial public stock offering at $17 each, above its expected range.
Trulia shares , trading on the New York Stock Exchange under the symbol "TRLA," opened up more than 30 percent early Thursday.
The company and its shareholders planned to sell 6 million shares. At $17 apiece, the offering would raise $102 million.
Earlier this month, Trulia had estimated its shares would sell for $14 to $16 each. The $17 IPO price indicates solid demand for the offering.
Trulia itself aims to sell 5 million shares, and wouldn'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.
The San Francisco company 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, which operates website Trulia.com and mobile apps, 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.
Trulia co-founder Pete Flint told CNBC's "Squawk on the Street,"that a third of its usage has been through Trulia's mobile apps. And "when advertisers and real estate professionals buy our mobile specific services, they spend 25 percent more than the web equivalent," he said.