Last month’s mysterious surge in the share prices of publicly-traded iBuyers Opendoor and Offerpad has put a rest to the bigger company’s delisting worries.
Opendoor, which was put on notice in May that it faced delisting from the Nasdaq Stock Market because its share price dipped below the $1 minimum threshold, has regained compliance with Nasdaq and cancelled plans for a reverse stock split, the company disclosed Friday.
But Offerpad is still coping with a different delisting issue tied not to its share price, but its market capitalization. The New York Stock Exchange notified the company in April that it could be delisted because its market capitalization had dropped below $50 million.
The last two weeks of July were a wild ride for both companies, with investors buying and selling tens of millions of shares in Offerpad and more than 6 billion shares of Opendoor in what some speculated was a combination of a meme stock rally and short squeeze.
Shares in Opendoor have surged nearly 300 percent in the last month, while rival Offerpad gained more than 30 percent. Source: Yahoo Finance.
Shares in Opendoor, which hit a 52-week low of 51 cents on June 26, soared to nearly 10 times that value, hitting a new 52-week high of $4.97 on July 21.
Although Opendoor shares have given up much of those gains, closing at $2.10 Friday, the company’s price-per-share hasn’t closed below the $1 threshold since July 14.
Nasdaq informed the company on July 31 that it had regained compliance with listing requirements, and Opendoor executives have called off plans for an Aug. 27 special shareholders meeting to vote on a reverse stock split.
Shares in Offerpad, which were changing hands for as little as 91 cents as recently as June 30, went on a similar rollercoaster ride, briefly soaring to a new 2025 high of $4.95 on July 21.
At that price, Offerpad’s market capitalization — the total dollar value of the company’s outstanding shares — was $151 million, triple the New York Stock Exchange’s required minimum of $50 million.
But at Friday’s closing price of $1.22, Offerpad’s market cap of $37 million was back below the $50 million minimum. With 37.3 million shares outstanding, Offerpad’s price per share would need to rebound to $1.34 for the company’s market cap to meet the $50 million minimum threshold.
Offerpad was able to take advantage of the surge in the company’s share price, however, raising $6 million on July 24 by issuing 2.86 million shares of common stock and warrants that can be converted into up to 1.43 million shares.
Offerpad, which executed a 1-for-15 reverse stock split in 2023 to head off delisting after its price per share fell below the required $1 minimum, submitted a business plan in May to the New York Stock Exchange detailing how the company intends to get back into compliance with the stock exchange’s listing standards.
The exchange accepted the plan on July 18, and Offerpad’s common stock will continue to be listed during an 18-month “cure period,” during which the company will be subject to quarterly monitoring compliance with the business plan and other continued listing standards.
Editor’s note: This story has been updated to note that Offerpad submitted a business plan to the New York Stock Exchange which gives the company 18 months to regain compliance with the exchange’s listing standards.
