Trulia Plans To Raise $150 Million As A Follow-On Offering
Real estate search engine Trulia has announced that they will be looking to raise $150 million as part of a follow-on offering. The net proceeds will be used to acquire or invest in complementary businesses, products, services, technologies, or other assets. The shares are being partially released by officers and directors of the company. About $100 million will go into the company reserves.
Trulia said that they will be offering around 5.25 million shares in a primary and secondary offering. Of that 5.25 million, around 1.75 million of those shares will come from the stockholders and 3.5 million are coming from Trulia. The numbers are based on a $30.44 per share price as of March 8. Trulia’s last major acquisition was of a company called Movity in December 2010. Movity created a service to track local check-ins.
“The follow on offering is for the company to build a bigger cash reserve to accelerate the growth of the business. As a company, we will continue to be very thoughtful and disciplined in our approach to putting our capital to work. The purpose of raising additional capital is to strengthen our cash reserves and balance sheet, so we can execute on growth opportunities as they arise, such as mergers and acquisitions, partnerships and funding new product initiatives,” said Trulia.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry