The iBuyer went public a day after merging with the Spencer Rascoff-led Supernova Partners Acquisition Company. The company will now be known as “Offerpad Solutions.”
IBuyer Offerpad quietly went public on Thursday after merging with the Spencer Rascoff-led special purpose acquisitions company (SPAC) Supernova Partners Acquisition Company, Inc. the day before.
The move puts Offerpad into a new league and solidly pits Rascoff against Zillow and their iBuyer, the company at which he was CEO for nearly 15 years.
The consolidated company is now known as “Offerpad Solutions” and operates under the ticker symbol OPAD. The company was trading at just under $9 per share on the New York Stock Exchange (NYSE) on Thursday, valuing it at about $2.7 billion, according to market experts who calculated the estimate based on 300 million shares of common stock and the company falling short of its initial $10 per share goal.
“There are a little more than 300 million shares of OPAD outstanding,” Ramey Lane, a law partners at Vinson & Elkins who reviewed the company’s proxy statement in advance of the completed merger, told Housing Wire. “At an assumed $10 per share, that gets you about a $3 billion valuation.”
As of Friday mid-morning, that price per share had dropped slightly to about $8.50.
When Rascoff announced his SPAC would be taking Offerpad public in March 2021, he anticipated the post-transaction equity value of the company to be $3 billion. At that time, he also said the deal would give Offerpad up to $650 million in gross cash proceeds.
However, a merger announcement released on Wednesday stated that Offerpad Solutions earned about $284 million from the merger transaction, which it plans to use to “accelerate market expansion, to invest in technology and product development, to pay transaction expenses and for other general corporate purposes including the repayment of indebtedness.”
“We are taking home buying and selling from chaotic to controlled, from expensive to efficient, and from the past straight into the future. We are just getting started,” Offerpad Founder and CEO Brian Bair said in a statement emailed to Inman. “We are excited about the tremendous opportunity ahead of us as more and more buyers and sellers opt for our digital-first experience.”
In mid-August the iBuyer posted its first profitable quarter, earning $376.8 million in revenue and gaining a net income of $9.2 million.