Zillow today priced its initial public offering at $20 a share, well above the $12 to $14 range in which the online real estate aggregator expected to price earlier this month.
The Seattle-based company said in a filing with the Securities and Exchange Commission today that it plans to sell nearly 3.5 million shares, raising about $69.2 million. The company also plans a private placement of 275,000 shares to certain existing Zillow investors, raising another $5.5 million and giving the company a total IPO of about $74.7 million and a valuation of about $540 million.
The company's shares will begin trading tomorrow on the Nasdaq stock exchange under the ticker symbol "Z."
Founded in 2004 and launched as a Web site in 2006, Zillow has a sales and rental database on 100 million U.S. homes. The company's revenue comes from real estate professionals' subscription fees and advertising.
The companyin 2008. It lets prospective borrowers get quotes anonymously and lenders get leads for free.
The Internet-IPO climate has warmed up this summer, with daily-deals sitethat would reportedly value the company at about $30 billion, while Zynga that will reportedly value the FarmVille game maker at $20 billion.