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Compass Makes Plans to Go Public

January 12, 2021

The fast-growing real estate brokerage Compass has filed a draft registration with the U.S. Securities and Exchange Commission for confidentiality for a possible IPO. The number of shares to be offered, the price range, and a timeline for the offering have not yet been determined, several media outlets report.

Compass, which markets itself as a high-tech brokerage, has been quick to expand its presence in the residential real estate market since starting in 2012. It has raised $1.5 billion in funding from investors, including from SoftBank. Compass was founded by Ori Allon and Robert Reffkin, its current CEO.

When the COVID-19 outbreak first started, the company reportedly trimmed about 15% of its staff. But as the housing market came roaring back, Compass has resumed its pattern of aggressively recruiting agents to grow its business throughout the country. It has also grown its ancillary services, including offerings of a concierge service, bridge loans for lending, and a title and escrow arm.

In 2019, Real Trends ranked Compass the number 3 residential firm in the nation with $91.3 billion in sales.

Compass has long been rumored to have IPO aspirations. In an email to agents last month reported by The Real Deal, Reffkin stated about a rumored IPO: “Being public will allow Compass to raise capital that we can invest in more tools and more support to help you.”

Compass’ IPO follows a trend of other real estate companies going public in recent months or making plans to, including iBuying giant Opendoor and short-term rental site Airbnb.

Source: 
Compass, a Much-Hyped Real Estate Startup, Files to Go Public,” Forbes.com (Jan. 11, 2021) and “Compass Files Confidentiality for IPO,” The Real Deal (Jan. 11, 2021)