Trulia Shares Soar In First Day

20/09/2012 8:37 pm

Trulia, the real estate information portal, climbed as much as 44% in its first day after pricing the shares above the proposed range in an initial public offering. Demonstrating investors' confidence in the platforms business model and future.

San Francisco-based Trulia priced its initial public offeringlast night at $17 per share. The shares advanced 43 percent to $24.36 as of 12:42 p.m. in New York after earlier reaching $24.51. According to Yahoo finance if the shares hold it would mark the biggest climb in a US debut since the July IPO of teen retailer Five Below Inc.

"It's been super exciting--this is historic moment for us as a company," said Pete Flint, Trulia's founder and chief executive.

Though they're not turning a profit yet, user growth and the number of visitors and subscribers remain promising and today's over 40% rise underscores that sentiment. Not only is this an upbeat sign for the IPO market, it could mark improved confidence in the real estate market.

Trulia's stock "was double digit times oversubscribed," Scott Sweet, founder of research firm IPOBoutique, told CNNMoney.

Trulia says it may use a portion of the money it raises "to acquire or invest in complementary businesses, products, services, technologies, or other assets."

Trulia acquired Movity, a startup that helps homebuyers and renters learn more about the area they're considering living in, in December 2010.

In afternoon trading, shares of operator Move Inc. were little changed from their previous close of $8.73, while Zillow was trading up about 1 percent from Wednesday's close of $45.55.