After years of speculation about the timing around Compass’s initial public debut, the company left another breadcrumb Tuesday.
In a companywide memo to agents obtained by Inman, Compass CEO Robert Reffkin espoused the potential benefits of being a publicly traded company.
Robert Reffkin | Photo credit: Compass
“I can’t comment on when the timing will be, but being public will allow Compass to raise capital that we can invest in more tools and more support to help you save time, grow your business and better serve your clients — more brand recognition, more programs and resources like Concierge, more employees to support your success,” Reffkin said, in the memo, which was first reported by The Real Deal.
Reports emerged in mid-November that the SoftBank-backed company had hired Goldman Sachs and Morgan Stanley as the underwriters of a potential initial public offering in 2021.
Earlier in the year, Compass hired a securities attorney. The tasks outlined in the job description included the “timely satisfaction of SEC and stock exchange compliance and reporting obligations.”
The company has also spent the year bolstering its board of directors with independent appointments, adding Charles Phillips, Pamela Thomas-Graham, Eileen Murray and Steve Sordello.
Compass hasn’t been shy about its public ambitions, but Reffkin has, in the past, pointed out that the company doesn’t need to go public to raise capital.
“Our business is really surging,” Reffkin said, in an appearance on CNBC just three months ago. “As a result, we don’t need to go public in order to raise capital.”
In the memo, however, Reffkin does note that a potential public offering means, “more capital to invest in your business.”
“We will be able to invest more in building towards the Compass Northstar: Anything an agent needs, Compass provides,” Reffkin said.
Compass declined a request to comment on the memo.
