SoftBank-Backed Compass Rises in Debut After Slashing IPO Size


Real estate brokerage Compass Inc., backed by SoftBank Group Corp.’s Vision Fund, rose in its trading debut after pricing a $450 million initial public offering at the bottom of a reduced range.

The company’s shares opened at $21.25 Thursday after it sold 25 million for $18 each in the IPO. The shares were selling for $20.60 at 12.16 p.m. in New York trading, giving Compass a diluted valuation of about $10.3 billion including restricted stock units and options, according to Bloomberg’s calculation.

The IPO market has been hit directly by the market volatility after two record quarters for listings, thanks largely to the boom in blank-check companies. Intermedia Cloud Communications Inc., which had set to debut on Thursday, delayed its listing, citing unfavorable market conditions. Budget carrier Frontier Group Holdings Inc., also listing Thursday, saw its deal priced at the low end.

SoftBank-Backed Compass Rises in Debut After Slashing IPO Size

Compass had halved the size of its IPO target Wednesday prior to its pricing, reducing the target range to $18 to $19. It had earlier marketed 36 million shares for $23 to $26.

Led by former Goldman Sachs Group Inc. banker Robert Reffkin, Compass also counts Discovery Capital Management among backers, filings showed.

The Compass offering was led by Goldman Sachs, Morgan Stanley and Barclays Plc. Its shares are trading on the New York Stock Exchange under the symbol COMP.

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