Trulia Tipped To Go Public Thursday In $78M IPO

20/09/2012 12:22 am

Shares in real estate search website Trulia could begin trading on the NYSE as early as this week. According to allthingsd.com, the IPO could price tonight and begin trading as early as Thursday.

A Trulia spokesman declined to comment on reports on Forbes that Trulia's IPO will take place this week.

Trulia is expected to offer 5 million shares priced at $14 to $16 per share. If underwriters exercise an option to purchase 900,000 additional shares the IPO is expected to raise at total of $78m after expenses, the company said.

Competitor Zillow raised $75 million in an IPO last year, and $147 million in additional capital through a secondary offering of more than 3 million shares.

In June, Trulia jumped to No.2 behind Zillow on the list of most visited real estate websites by Experian Hitwise. The two real estate web giants are locked currently in legal battle of patent infringement. With Zillow claiming that Trulia had infringed on a patent related to its property valuation tool.

Real estate technology consultant Brian Boero of 1000Watt Consulting has estimated that when the dust settles, Trulia will have a cash balance of roughly $85 million, Zillow will have $190 million, and Realtor.com operator Move Inc. $25 million.

In a note to investors, Morningstar analyst James Krapfel said that he believes Zillow is the best bet in the space, but that Trulia should grow as more consumers and agents use the services. "We believe Trulia has a growing network effect that could keep upstart online competitors at bay, but believe Zillow's larger network effect will allow Zillow to maintain its position as the primary home search marketplace."