Openn Negotiation (ASX:OPN) share price up 13% in second day of trade

The online real estate auctions hosting company outperformed again today.

| More on:
Online auctions company auctioneer holds wooden gavel over small plastic model house

Image Source: Getty Images

The Openn Negotiation Limited (ASX: OPN) share price has been soaring today after first listing on the ASX yesterday.

Its successful initial public offering (IPO) yesterday saw the share price jump from its offer price of 20 cents to a closing price of 31 cents.

Today, more than 11.7 million shares changed hands, with the Openn share price finishing the day at 35.5 cents, up 12.9%. It hit an intraday high of 43.5 cents at lunch time.

Let’s take a closer look at how the first two trading days unfolded for Openn.

What is Openn Negotiation?

Openn is a cloud-based property platform that hosts online real estate auctions.

To date, Openn has facilitated more than $2 billion in Australian property sales. The platform is used by more than 3,000 agents across Australia and New Zealand.

The company’s revenue model sees it derive income from property listing fees on its platform. This comes in at $500 per property.

It also receives revenue through an agent training segment that instructs agents how to use the platform. Only trained agents can list properties on Openn.

As part of its prospectus, Openn outlines $851,402 in revenue for FY2020 under this model, which translates to a pre-tax loss of about $1.2 million.

Openn’s IPO success

The initial offering for Openn Negotiation shares was 20 cents a piece, according to the prospectus.

The company listed with an initial valuation of $38 million, and hoped to realise $9 million from the equity raise.

Based on today’s closing price, Openn’s market capitalisation has grown to $41.3 million.

Given its IPO success, Openn intends to use the raised funds for domestic market expansion.

The company might also establish a footprint in the US in the future.

Foolish takeaway

The Openn Negotiation share price is skyrocketing in the secondary market since its IPO yesterday.

Investors are enthusiastically buying into the Openn Negotiation growth narrative.

Online auctions have become much more accepted over the past year due to extensive use by agents during COVID lockdowns.

The Openn Negotiation share price has outperformed the S&P/ASX 200 Index (ASX: XJO) today, with the broad index up 0.9%.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A nervous ASX shares investor holding her hands to her face fearing a global recession may occur
Share Market News

5 things to watch on the ASX 200 on Thursday

It looks set to be a bad day for the ASX 200 on Thursday...

Read more »

Top 10 blank list on chalkboard
Share Market News

Here are the top 10 ASX shares today

Here are your top 10 biggest gainers in the ASX 200 on Wednesday.

Read more »

a man with a wry smile is behind ascending piles of coins as he places another coin on top of the tallest stack.
Share Market News

Can ASX 200 banks really see a 15% profit jump if the cash rate hits 1%?

These analysts are predicting big returns for banks in the rising interest rate environment.

Read more »

An office worker and his desk covered in yellow post-it notes
Share Market News

Here are the 3 most heavily traded ASX 200 shares on Wednesday

We take a look at the most traded ASX 200 shares by volume today.

Read more »

an oil refinery worker checks her laptop computer in front of a backdrop of oil refinery infrastructure. The woman has a serious look on her face.
Energy Shares

ASX 200 energy shares in focus amid frightening global supply crisis

A dearth of new fossil fuel projects in recent years has opened the door to today's global energy crisis.

Read more »

A happy man and woman sit having a coffee in a cafe while she holds up her phone to show him the ASX shares that did best today
Share Market News

ASX 200 midday update: BlueScope and Fortescue rise, Boral tumbles

The ASX 200 is having a strong day on Wednesday...

Read more »

A man standing in a red rock mine is covered by a sheet of gold blowing in the wind.
Gold

What’s sending the Northern Star share price higher today?

The gold miner reported it will return 20% to 30% of cash earnings as dividend payouts at its investor presentation,…

Read more »

Legendary share market investing expert and owner of Berkshire Hathaway Warren Buffett
Share Market News

Warren Buffett’s been bargain hunting following the stock market sell-off. Here’s the sector he’s been buying (and selling)

We check the investing guru's recent buys and sells.

Read more »