Real estate search and information portal Trulia expects to raise up to $115.4 million in a follow-on public offering if underwriters of the deal exercise in full an option to purchase additional shares, the company disclosed today in a regulatory filing.
Trulia says it expects to use "some or all" of the proceeds of the offering to "acquire or invest in complementary businesses, products, services, technologies, or other assets," although it has "not entered into any agreements or commitments with respect to any acquisitions or investments at this time."
Rival Zillow signed agreements in 2012 to acquire four companies — RentJuice, Buyfolio, Mortech and HotPads — having raised $156.7 million in a follow-on offering that closed Sept. 24.
Trulia went public around the same time last year. Now the company and some of its biggest stockholders are proposing to sell another 5.25 million shares, and also give underwriters a 30-day option to purchase another 787,500 shares.
All told, the follow-on offering is valued at up to $164.3 million. But many of the shares will be put up by existing shareholders, and Trulia will not see proceeds from the sale of those shares.
Trulia will offer 3.5 million shares, and underwriters will have the option of purchasing 525,000 additional shares from the company. If underwriters don’t exercise their option, the follow-on offering will raise $100.3 million for Trulia after deducting expenses, based on Friday’s closing price of $30.44, the company said. That jibes with the company’s initial S-1 registration statement, filed last week.
Existing Trulia shareholders will offer 1.75 million shares, and underwriters will have the option of purchasing an additional 262,500 shares from them. Trulia will not see any proceeds from those sales.
Eight Trulia executive officers and directors will sell at least 633,324 shares, and up to 792,103 shares (two other directors representing investment funds are not included in that total). Directors planning to sell shares include Trulia co-founders Sami Inkinen and Pete Flint.
Inkinen, who left his role as president of the company last year but remains on the board of directors, will offer 354,103 shares. CEO Pete Flint is offering to sell 260,000 shares.
Inkinen will continue to own 1.56 million shares, or about 4.9 percent of the company, if underwriters exercise their option to purchase additional shares in full. Flint will hold 2.49 million shares after the follow-on offering, which will represent a 7.72 percent stake in the company if underwriters exercise their options in full.
Stockholders Accel IX LP and Fayez Sarofim Investment Partnership No. 5 LP will sell at least 1.02 million and up to 1.23 million shares.
