BrokerageIndustry News

ZonicRealty plans $3 million ‘DPO’

No underwriter involved in direct public offering

Online discount brokerage ZonicRealty.com Inc. has announced plans to file for a direct public offering of common stock to raise an estimated $3 million. ZonicRealty -- which currently has 22 sales associates in three New York markets -- plans to sell 500,000 shares of common stock priced at $6 per share directly to the public. The Saratoga Springs-based firm claims to be the first real estate company to do a "DPO." The company intends to file a registration statement with the Securities and Exchange Commission before the end of this quarter and expects approval of its DPO in the third or fourth quarter. In an initial public offering, or IPO, a licensed broker-dealer typically acts as an underwriter and sells the company's shares to the broker's customers. In a DPO, the company saves the cost of an intermediary and can sell directly to anyone, including its own customers, employees, family, friends, suppliers and distributors.One of the reasons ZonicRealty chose a DPO inst...