While the IPO market has had a comeback this year, it's still not easy. Investors want solid companies with a strong growth path.So, that's what makes the recent IPO filing of Iggys House so strange.
Some background: Iggys House is an online real estate company and actually rebates 75% of a brokerage commission to each client. What's more, the company provides a variety of online tools to manage a real estate transaction. In fact, there is no charge to list a property.
No doubt, Iggys House is addressing a large market. But, of course, the real estate market is fairly stagnant right now. What's more, the company is in the midst of expanding into the mortgage market, which is also in trouble and crowded with competition.
Keep in mind that the company has offered its services only since April 2006. In fact, for the first quarter of 2007, revenues were a mere $224,631 (which is not even enough to buy a house nowadays) and the net loss was a hefty $1,300,873.
The lead underwriter is Northland Securities and the proposed ticker is IGGY.
The prospectus is on the SEC website. Also, if you want to check out other IPO filings, click here.
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
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Reader Comments (Page 1 of 1)
8-17-2007 @ 2:01PM
Noah James said...
In regards to your post about Iggys House:
BuySide Realty, Iggy's "sister" company, is the one that provides buyers with a 75% commission rebate, not Iggys House.
Iggy's House provides home sellers with FREE access to MLS listings plus the ability to create a free website for their home including text, pictures, video, etc.
Perhaps the real estate market is "stagnate" because as we all know, selling and buying a home with a traditional real estate agent can often be unpleasant and quite expensive. With Iggys/Buyside's new tactics, they make selling and buying a home a lot easier and far less expensive than ever before. I think concepts like theirs will give the real estate industry the much needed boost and turn things around for the better.
8-23-2007 @ 11:47PM
Big Rodge said...
This company is a smoking turd. If you break out their $225K 1st quarter revenue, only like $100K was operating income (from real estate commissions), the rest could be anything (bartered advertising, bs, whatever). Their are new 1 store Subway franchisees making more than that in revenue. Give me a break. Also, this business model whereby you give a 75% kickback to the buyer, even though the listing agent shows the house, is fatally flawed. Already listing agents in the NWMLS have said that if they show the house, you get 1%. This IPO is about 1 thing, the founders (Web Street guys who got lucky selling out to ETrade during the tech bubble) getting P-A-I-D. If you invest in this IPO, you are an idiot.
8-28-2007 @ 3:40PM
noah james said...
In regards to Big Rodge's post:
Iggy's House, a "smoking turd?" Hardly.
Granted, their 1st quarter revenues aren't as high as other companies; however, I think they're really on to something here and will experience massive growth once consumers acquire more knowledge and a firmer grasp on their concept.
Big Rodge, you sound like a disgruntled real estate agent who has lost home sales to Iggys House
11-25-2007 @ 9:16PM
P. Griffin said...
Your not kidding. They are addressing a very large market.
It does not matter if the market is stagnate. Six million people will still buy a home this year.
The bottom line is everyone hates Realtors. Well, maybe not everyone, just people who have wondered why they have made so much money for doing very little. They do less today, thanks to the information available to the consumer, yet make more money.
Any company that takes 75% of the commission that would have gone to a Realtor and gives it to the buyer is all right by me.