Zillow's shares double in stock market debut
The company's stock soars from its initial price of $20 a share on its first day of trading. Zillow sold 3.46 million shares to raise $70 million.
On Zillow's first day of trading on the Nasdaq, its shares more than doubled, soaring to $45 this morning from its initial pricing of $20 a share.
The company sold 3.46 million shares to raise $70 million. It will also complete a private placement, totaling $5 million, and will have the option of selling 500,000 additional shares, depending on demand.
The Seattle-based company, which aggregates real-estate listings and mortgage information, trades under the ticker symbol "Z." (Later in the day, shares had fallen back to just above $38.)
Zillow expects to use the proceeds for general corporate purposes, including working capital, sales, and marketing activities.
The company has a history of losses, spanning the past five years. In 2010, it lost $6.8 million on revenue of $30.5 million, and in the first three months of 2011, it lost $826,000 on revenue of $11.3 million.
Zillow is known for coining the term "Zestimates," which estimate home values. It covers nearly 100 million U.S. homes today, and has also added rental estimates. It primarily generates revenues from local real-estate professionals.