SoftBank-backed Compass slashes target price for U.S. listing

(Reuters) -Compass Inc, the U.S. real estate technology firm backed by SoftBank Group, on Wednesday slashed the target price for its initial public offering and cut the number of shares on offer.

Compass said it was aiming to sell 25 million shares at $18 to $19 each, down from its previous target of 36 million shares at $23 to $26.

At the top of the new range it would raise $475 million, down from $936 million, and would value Compass at $7.35 billion. A fully diluted valuation, which includes securities such as options and restricted stock, would be $9.3 billion, compared to $6.4 billion in its most recent private funding round in 2019.

The move is a sign of fading investor demand for new technology, with companies having already raised over $36 billion through U.S. listings this quarter, up more than 360% year-on-year, according to Refinitiv.

In a positive sign for the market, online education provider Coursera Inc sold shares at the higher end of its target range.

New York-based Compass was founded in 2012 by former Twitter Inc engineer Ori Allon and former Goldman Sachs executive Robert Reffkin. It covers 46 metropolitan statistical areas in the United States and works with over 19,000 agents.

It has raised $1.5 billion from investors including SoftBank, Goldman Sachs and Canada Pension Plan Investment Board.

Compass’ final price is scheduled to be announced later on Wednesday and shares are due to begin trading on the New York Stock Exchange on Thursday under the symbol “COMP.”

Goldman Sachs, Morgan Stanley and Barclays are the lead underwriters.

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