Zillow’s Shares Double in Stock Market Debut
On Zillow’s first day of trading on the Nasdaq, its shares more than doubled, soaring to $45 today 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.”
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 revenues of $30.5 million, and in the first three months of 2011, it lost $826,000 on revenues 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.