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As of Monday, CoStar Group is in good company — 500 of them, in fact.
The real estate analytics and technology company, now vying to beat Zillow in the search portal race, will now be listed on the vaunted S&P 500 index along side behemoths including Apple, Amazon and Microsoft, according to an announcement this week.
“Joining the S&P 500 is a validation of the faith that they have placed in our company, our team, our products, and our services,” CoStar CEO Andrew Florance said in a statement.
As part of that inclusion, CoStar, which in recent years has shifted to capture market share in the residential space, announced it would raise money to continue its rapid growth. The company announced it was offering $750 million of stock valued at $76.64 per share. The company said it would use the funds raised to continue its expansion.
“CoStar expects to use the net proceeds of the offering to fund all or a portion of the costs of any strategic acquisitions CoStar determines to pursue in the future, to finance the growth of its business and for working capital and other general corporate purposes,” the company said.
The S&P 500 is an index of the largest companies traded on the Nasdaq, New York Stock Exchange or the Cboe. It is considered one of the most popular equity indices among investors.
While there are a handful of real estate companies on the index, CoStar is the largest portal and marketing company when it joins on Monday.
The company recently began competing with Zillow in the residential market, launching its Citysnap search portal of homes for rent and for sale in New York in June.
The company has also largely weathered the battering of stocks for real estate companies this year. While the company’s stock is down 7 percent so far this year, it’s up 26 percent compared to six months ago. Zillow stock is down 42 percent this year, and 22 percent in the past six months.
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