Trulia, the real estate lister and search engine, announced they will be raising $150 million to offer additional shares previously not released, or follow-on offering, so they can expand business ventures, reported TechCruch.
"We currently intend to use the net proceeds to us from this offering for working capital and other general corporate purposes, and expect to use some or all of such net proceeds to acquire or invest in complementary businesses, products, services, technologies, or other assets," the company stated in the SEC filing.
The company made their initial public offering last fall, reported The Washington Post and its faring well like its competitor Zillow that went public in the summer of 2011. Trulia, headquartered in San Francisco and showcases more than 4.5 million real estate and rental listings across the country with 22 million visitors per month
According to Businesswire, Trulia and a number of stockholders will be selling 5,250,000 shares in primary and secondary offerings, with 787,500 shares sold to underwriters who were given the option of purchasing within 30 days.
"If the underwriters' option to purchase additional shares in this offering is exercised in full," according to the SEC.
That means the total raised could reach $164 million. They also reported that 3.5 million shares are directly from Trulia while 1.75 million are from stockholders themselves.
The Trulia spokesman told TechCruch that $100 million "will go straight to the company's cash reserve."
"The follow on offering is for the company to build a bigger cash reserve to accelerate the growth of the business," he said. "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."
As of March 8, the last reported sale price for Trulia stock was $30.44 per share on the New York Stock Exchange.
