Call it a little IPO euphoria. For anyone wondering whether investors would bite on Zillow’s initial public offering, here’s your answer: The Seattle online real estate company just priced its IPO at $20 per share.
That’s a huge uptick from the initial price range — which was set at $12 to $14 per share — and even a step-up from a new price range the company set last week at $16 to $18 per share.
As anticipated, the company sold 3.4 million shares. With 274,999 shares expected to be sold at the offering price to existing shareholders, Zillow could pull in close to $75 million through the offering.
It will begin trading in the open market tomorrow on the Nasdaq exchange under the ticker symbol “Z.” In order to mark the occasion, Zillow CEO Spencer Rascoff plans to ring the opening bell.
(That’s when things will get really interesting to see if the company can justify a valuation of more than $500 million).
Zillow marks the first initial public offering of a Seattle area technology company since Motricity went public last summer.
But why our investors –at least those deep-pocketed ones pitched on the IPO road show — attracted to Zillow?
The company has a few things going its way, even though it did lose money last quarter (just $827,000) and has revenues that are much smaller than many of the other Internet companies now going public.
Zillow’s brand recognition in the online real estate arena is hard to match, with the company boasting some 22 million monthly visitors. Quarterly revenues — while small at $11.2 million — also are growing fast, more than doubling when compared to the same period last year.
Zillow also has an executive chairman in Rich Barton who has done it before on Wall Street, leading Expedia during some of its high-growth years. All of those things are adding up to a strong initial showing.
But, as I said, the real test will come tomorrow (and the following days, months and years) to see if Zillow can deliver on its overall mission of transforming the way people access real estate information.
Previously on GeekWire: Zillow set to price IPO this week: Six things to think about