California’s home-selling platform OpenDoor shares slump 11% in Nasdaq debut

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California’s home-selling platform OpenDoor shares slump 11% in Nasdaq debut

OpenDoor Technologies Inc., the San Francisco, California-headquartered online real estate company backed by the Japanese tech investment tycoon SoftBank Group, had eased off as much as a tenth of its market cap in Nasdaq debut on Monday.

Nonetheless, the Californian online home-selling platform employing more than 5,000 people, had opened the market nearly 6.7 per cent higher than its initial pricing, though had reversed course in afternoon session amid a broad-based weakness in the US money markets following reveal of a new strain of the pandemic pathogen in UK alongside several EU member countries.

In factuality, the SoftBank-backed tech start-up OpenDoor, had been among one of the hardest corporate-hits from the pandemic outbreak, as American home-buyers had turned a blind eye to US real estate market in March and April despite record-low long-term mortgage rates, while the online home-seller had to trim as much as 35 per cent of its workforce.

However, as US homebuilding market began to regain tractions later this year, OpenDoor had sought for a US public listing by merging with Social Capital at a $4.8 billion deal in a bid to shelve fresh liquidities.

OpenDoor shares tumble 11% in Nasdaq debut

Nevertheless, the San Francisco-headquartered online home-selling platform, made public through a merger with venture investor Chamath Palihapitiya’s blank-check firm Social Capital Hedosophia II, started off the day at $31.47, up about 6.7 per cent from Social Capital’s Friday’s closing price, however had rounded off the session with a broad-based decline, mostly stemmed off a widespread sell-off wave after release of UK’s finding of a new pandemic contagion strain as beforementioned.

However, OpenDoor was quoted saying in a statement later last week that it had around 544.4 million outstanding shares followed by the merger, valuing the company at $17.2 billion at Monday’s opening price. OpenDoor has about $1 billion in cash following its merger deal with Social Capital Hedosophia II including a $600 million in fresh capital from Palihapitiya alongside other deep-pocket investors such as BlackRock, the world’s largest asset management company.