(Disclosure: Rose Law Group represents Offerpad.)
By Housing Wire
Instant homebuyer Offerpad quietly became a publicly traded business Thursday, after it merged with a blank check company led by former Zillow CEO Spencer Rascoff one day earlier.
Offerpad’s transition escalates the rivalry between Rascoff and his former company Zillow. It also nudges Offerpad from intriguing upstart to another business vying to move iBuying from dazzling concept to profit making enterprise.
The newly consolidated outfit, named Offerpad Solutions and under the ticker name “OPAD,” traded at a hair under $9 per share on the New York Stock Exchange Thursday, penciling out to an approximately $2.7 billion market capitalization, according to capital markets experts.
That estimate (complete market cap information had yet to be fully incorporated into trading data by Thursday afternoon) is based on the company’s 300 million shares of common stock, and falling short by 10% of its $10 per share benchmark.
“There are a little more than 300 million shares of OPAD outstanding,” explained Ramey Lane, a law partner at Vinson & Elkins who specializes in capital markets and analyzed the businesses’ proxy statement prior to the completed merger. “At an assumed $10 per share, that gets you about a $3 billion valuation.”
