We reported on the company’s filing for the secondary offering yesterday, but it just priced.
In addition to the 3.425 million shares offered by Zillow, executives and board members Rich Barton, Lloyd Frink and Erik Blachford sold an additional 575,000 shares.
Zillow’s stock has more than doubled from the IPO price of $20 per share in July 2011, with the stock closing today above $43 per share. It is one of the top performing new tech stocks in the country, and the new riches certainly will help cement its lead over Trulia, which earlier this year filed to raise up to $75 million in an IPO.
Here’s the key question: What in the heck is Zillow going to do with all of that new cash?
The company, with a market value of $1.2 billion, is profitable. But it has shown an interest in buying other companies, completing three deals in the past two years.
Could another buy be in the works?
With new offering of stock, Zillow has more than doubled its cash position. At the end of the second quarter, Zillow had about $70 million in cash, cash equivalents and short-term investments on the books.