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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