HouseValues plans to price company shares for its initial public offering at $10 to $12 per share, according to new filings with the Securities and Exchange Commission. The technology company specializing in matching real estate agents with consumers has applied to list its common stock on the Nasdaq National Market under the symbol “SOLD.”
The company set its IPO at 4.8 million shares, which it expects to net proceeds of about $57.5 million. HouseValues has no specific plan for the capital, but said it may use some proceeds to develop additional products and services, or to acquire or invest in businesses, products or technologies complementary to its core products, such as those in connection with residential mortgage-related services.
HouseValues first filed for its IPO in September, saying it expected to raise up to $86.3 million from the offering.
The company generated revenues of $25.1 million for 2003, and $33.3 million for the nine months ended Sept. 30, 2004. Net income was $3.8 million for 2003, and $5.6 million for the nine months ended Sept. 30, 2004.
HouseValues provides online marketing services to real estate agents and has been growing steadily since its inception five years ago. The company has been profitable, with positive cash flow since the second quarter of 2001. In May of this year, HouseValues raised $14.5 million in investment funding from William Blair Capital Partners.
The company has two separate operating brands. The first, HouseValues, provides home seller leads to realty agents who purchase the territory where the prospect is selling their home. The company in January launched a second, separate service for buyer leads, JustListed.com.
Prospective home buyers and sellers who sign up for the services receive free home price valuations or for-sale listings information from participating real estate agents. Their contact information is forwarded to the agent who purchased the region where they are either selling their home or plan to buy.
Last year, HouseValues purchased SOAR Software Solutions, a technology company that specializes in auto prospecting e-mail products and virtual office Web site applications. SOAR is available in about 65 percent to 70 percent of the country. The company has vendor agreements with MLSs to facilitate agents’ use of SOAR software with the MLS data.
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The JustListed service includes a free subscription to a SOAR Solutions product that sends automated e-mail messages with listings data from the agent to the buyer prospect. The SOAR component is included only in areas where the local MLS is equipped to facilitate the agent’s use of the SOAR technology. Agents in other regions can still use JustListed, but they have to use another automated system or a manual search-and-compile system to retrieve and send the listings information to the buyer prospects.
HouseValues also offers real estate agents a prospect management system called Market Leader, which helps agents build and maintain relationships with hundreds of prospective home buyers and sellers with minimal effort. In addition, the company offers personalized coaching and training for agent subscribers to help them build a long-term profitable business.
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