NEW YORK-- Trulia Inc. (TRLA) jumped in its public trading debut
Thursday, a robust start for the first initial public offering in
more than one month.
The company's shares opened at $22.10 on the New York Stock
Exchange, up 30% from its initial-public-offering price of $17. The
firm sold six million shares above the proposed range of between
$14 and $16, in a deal estimated to deliver net proceeds of $75.2
million.
San Francisco-based Trulia provides home listings through the
Web and mobile applications, and makes money selling subscriptions
and advertisements. The company said it had 22 million site users
in the first six months of the year, and more than 21,000 paying
subscribers.
Trulia's most-prominent competitors are Zillow Inc. (Z) and
Realtor.com, a property of Move Inc. (MOVE). Zillow has managed
strong post-IPO stock gains since its offering in July 2011,
closing at $45.55 Wednesday, more than double its $20 IPO
price.
Trulia's revenue grew 78% to $29 million in the first six months
of this year, but the company has never been profitable. Its
business is tied to the strength of the U.S. housing market, which
continues to emerge from a yearslong downturn.
Economists have noted the gradual recovery in the housing market
in recent months. On Wednesday, the National Association of
Realtors reported sales of previously occupied homes and
construction of single-family homes last month reached their
highest levels in more than two years.
Mobile users accounted for one-fifth of Trulia's total user
activity in 2012's first half, and the company stated in a filing
with the Securities and Exchange Commission that it will need to
translate its mobile-advertising efforts into revenue for its
growth to continue at as rapid a clip. Squeezing money from mobile
ads has been a challenge for some tech companies, but Trulia said
it believes it stands to benefit from users who are increasingly
using their services with smartphones when on the move while
looking at properties.
The company said it intends to use the proceeds from the IPO for
working capital and other general corporate purposes.
-By Write to Chris Dieterich at
christopher.dieterich@dowjones.com
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