Trading is set to start for Opendoor, an online homes marketplace, on Dec. 21. Through a partnership with Social Capital Hedosophia Holdings Corp. II (NYSE: IPOB), Opendoor Technologies intends to create a convenient one-stop digital marketplace for home sales.
Social Capital Hedosophia (SCH) is a SPAC owned by venture capitalist Chamath Palihapitiya. The deal raised about $1 billion to help the company’s growth potential and market expansion and enable it to develop new products, according to Yahoo Finance.
Opendoor is a publicly traded company
Opendoor will become a publicly traded company on Dec. 21. Common stock for the new company Opendoor Technologies will be traded on the Nasdaq under the ticker symbol "OPEN." Opendoor Technologies Warrants will trade under "OPENW."
Opendoor’s IPO date
The transaction was approved by Social Capital Hedosophia shareholders on Dec. 17. Public trading for the Opendoor IPO will start on Dec. 21.
Opendoor is an online real estate company
Opendoor was co-founded by Eric Wu, who is also the company's CEO. Keith Rabois and J.D. Ross were its other co-founders in 2014. The online real estate company is headquartered in San Francisco.
With the mission to empower more people with the freedom to move or relocate, Opendoor aims to streamline the process of buying and selling a home. It offers services on both sides of the real estate transaction, including financing options for buyers.
In a statement about the company going public, Wu said, “Today marks an important step on our path towards making buying and selling a home simple and instant, and unlocking home ownership for millions of people every year,” according to Yahoo Finance.
Bloomberg said that essentially Opendoor is a house-flipping company. It buys houses to refurbish and resell at the highest profit possible. Opendoor prefers to be called an iBuyer, or “a technology-enabled, one-stop-shop for homeowners who want to sell quickly with as little friction as possible.”
Opendoor’s valuation amid the COVID-19 pandemic
According to Bloomberg, Opendoor was valued at $4.8 billion, minus cash, by Social Capital Hedosophia.
Amid the COVID-19 pandemic, Opendoor paused home-buying and laid off one-third of its employees. Also, Opendoor's revenues are not expected to fully recover until 2022.
Social Capital Hedosophia CEO Chamath Palihapitiya expressed his confidence in the new Opendoor Technologies. According to Yahoo Finance, he said, “As a leader and innovator in the iBuying space, Opendoor has the opportunity to completely transform the residential real estate industry.”
SeekingAlpha also reported that Opendoor could potentially “revolutionize the residential real estate market.”
How to buy Opendoor SPAC stock
Investors will be able to find Opendoor stock easier. Starting on Dec. 21, investors interested in buying the stock can purchase it through the Nasdaq stock market exchange under the ticker symbol "OPEN."
Opendoor has seen growth in its iBuying business since its inception in 2014. However, a means of profitable scaling of the business will be a challenge.