Opendoor to go public as the shareholders of IPOB have approved the proposed merger between the two companies – Idaho Reporter

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Opendoor to go public as the shareholders of IPOB have approved the proposed merger between the two companies

On Thursday, December 17, 2020, Social Capital Hedosophia (NYSE:IPOB) shareholders have approved the proposed merger with a San Francisco-based online real estate company, paving the way for Opendoor to become a public company.

Social Capital Hedosophia is a publicly traded SPAC (special purpose acquisition company) listed on the NYSE and backed by Virgin Galactic Chairman Chamath Palihapitiya.

 

Opendoor is SoftBank-backed home-selling platform and following this merger shareholders of IPOB will hold only 6.6% of Opendoor.

Existing shareholders are keeping roughly 79% ownership. Post-merger, there should be about 630 million shares outstanding.

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While Opendoor is a leader in this field so far, it is likely that it won’t have the niche for itself. Zillow (NASDAQ:ZG),among others, is moving aggressively into the space and Redfin introduced Redfin Direct in 2019.

IPOB stock closed with a significant loss (-7.93%) on Wednesday in the final minutes of the trading day but bounced back on Thursday. Following the merger ticker will change from IPOB to OPEN and will start trading as such on Monday.

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