Compass, which operates an online residential real estate brokerage platform, filed on Monday with the SEC to raise up to $500 million in an initial public offering. However, this is likely a placeholder for a deal we estimate could raise up to $1.5 billion.
Compass provides an end-to-end platform for residential real estate agents, which includes an integrated suite of cloud-based software for customer relationship management, marketing, client service, and other functionality. Through 2020, Compass agents have represented either sellers or buyers of more than 275,000 homes.
The New York, NY-based company was founded in 2012 and booked $3.7 billion in revenue for the 12 months ended December 31, 2020. It plans to list on the NYSE under the symbol COMP. Compass filed confidentially on January 11, 2021. Goldman Sachs, Morgan Stanley, and Barclays are the joint bookrunners on the deal. No pricing terms were disclosed.
