Trulia Falls After Unveiling Plan to Sell $100 Million in SharesTom Giles
Trulia Inc., the operator of a residential-property listings website, fell in late trading after announcing plans to sell an additional $100 million in shares.
The company will use the proceeds to acquire or invest in businesses or technologies that complement its own, San Francisco-based Trulia said in a statement. Shares fell to as low as $26.20 in extended trading after gaining 3 percent to $28 at the close in New York.
The stock declined on concern that the sale will dilute the stakes of existing holders. Trulia shares had surged to a record last month amid optimism that gains in U.S. home prices would help boost advertising sales. The company competes with larger rival Zillow Inc. for listings and revenue from advertisers seeking to reach home buyers and renters.
Deutsche Bank AG, JPMorgan Chase & Co. and RBC Capital Markets are managing the offering, Trulia said.