Opendoor Technologies (OPEN) shares fell Tuesday, after the online home brokerage began a secondary public offering of 28 million shares from an existing shareholder.
The holder is SVX Excalibur (Cayman), based in the Cayman Islands. MarketWatch reported that the offering has priced.
Tempe, Ariz.-based Opendoor recently traded at $16.94, down 4.6%. At that price, the 28 million shares would be valued at $474.3 million.
The stock touched a 52-week high above $39 in mid-February.
The underwriter -- Citigroup -- has an option to buy as many as 4.2 million more shares from the selling stockholder.
Opendoor isn’t selling any shares and won’t receive any proceeds from the offering. The offering won’t change the number of shares that are currently outstanding.
Last month Opendoor reported stronger-than-expected results for the second quarter, drawing positive reactions from analysts.
In the quarter, revenue and adjusted earnings before interest, taxes, depreciation and amortization beat analysts’ forecasts.
KeyBanc analyst Edward Yruma has a buy rating on the company with a $42 price target.
Opendoor provides “some of the most compelling secular growth opportunities” in the investment bank’s coverage universe, he wrote, according to Bloomberg.
He views the second quarter as an “important inflection point” because Opendoor generated positive adjusted Ebitda.
Credit Suisse analyst Stephen Ju has an outperform rating and a $40 price target.
“The better-than-expected revenue was...
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