reAlpha Tech, which operates short-term rental properties and a related investment platform, filed on Tuesday to register its shares with the SEC and complete a direct listing on the Nasdaq. The shares of common stock listed will be sold by existing shareholders; reAlpha Tech will not raise new capital in its listing. The company did not disclose a reference price or anticipated timing of its listing.
The Registered Stockholders plan to sell up to 41.7 million shares of common stock.
reAlpha Tech concluded a Regulation A offering of its shares in January 2023, in which it raised $8.6 million at $10 per share. At that price, the company would command a market value of $425 million.
reAlpha Tech's business model is built around providing retail investors with the opportunity to invest in reAlpha-owned short-term rental properties, pursuant to exempt offerings directed at those retail investors through syndications. The company plans to acquire properties that satisfy its internal investment criteria and renovate, prepare them for rent, list them on short-term rental sites, and arrange management, internally or through third-parties. reAlpha's portfolio currently consists of five properties primarily in Florida, and to date, the company has started its first syndication of one of its Orlando properties.
The Dublin, OH-based company was founded in 2021 and plans to list on the Nasdaq but has not selected a symbol yet (RC ticker: LPHA.RC). As a direct listing without a firm commitment offering, there are no underwriters on the deal; however, unlike most direct listings to date, it has not selected a financial advisor.
