Bucking recent IPO trends, the San Francisco-based real estate website went public Thursday in a strong debut.
Just when it seemed like the start-up IPO was a bad move, one San Francisco-based Internet company soared past expectations on its debut day.
Real estate information website Trulia went public Thursday and saw an impressive spike after the opening bell. After just two hours of trading, the stock was up more than 39% from its IPO price, Forbesreports. The company priced its shares at $17 on Wednesday night but opened at $22.10, reaching $23.68 a couple hours later. The stock traded up 41%, closing on Thursday at $24.
Trulia, which provides real estate listings on its site and through its mobile app, makes the bulk of its money through advertisements and subscriptions. The company reported 22 million unique visitors to the site in the first half of 2012, with 21,000 paying subscribers. The company’s SEC filings also reported more than 360,000 real estate professionals were using the service as of the end of June.
Trulia competes with similar sites like Zillow and Realtor.com. According to The Wall Street Journal, Zillow also did well post-IPO in 2011. Zillow, which was priced at $20 a share in its IPO, closed at $46.17 on Thursday.
Investors are hoping to see similar gains with Trulia. In the meantime, however, Trulia has another matter to deal with: Zillow is suing the company for patent infringement.
MAEGHAN OUIMET is a business and culture reporter whose work has appeared in Boston Magazine and Rolling Stone. She covers technology start-ups and innovations from the San Francisco bureau for Inc.com. @MaeghanO