IBuying firm Offerpad completed its planned merger with a publicly traded shell company and began trading Thursday on the New York Stock Exchange as OPAD. The share price opened at $9.36 and by mid-day was hovering just below $9. The firm went public by merging with Supernova Partners Acquisition Company, a shell company created by former Zillow CEO Spencer Rascoff, now an L.A.-based investor and advisor to tech startups.
Offerpad (full name: Offerpad Solutions) expected proceeds from its stock-market debut of approximately $284 million, with plans to use the money to expand from its current 17 metro markets located mainly across the southern U.S. It also plans to invest in technology and product development, pay down debts and cover expenses connected to the merger. For Q2 2021, the firm’s first publicly reported quarterly results, Offerpad posted record revenue of $378.6 million. It became the first major U.S. IBuyer to post a profitable quarter, with net income of $9.2 million.
For the current quarter, the firm predicted revenue of $460 million to $520 million and earnings before interest, taxes, depreciation, and amortization (EBITDA) of between -$15 million and -$8.5 million. Read the full merger announcement here.