Zillow IPO Shares Dropping Like A Rock. Well, that was fast. After opening at a sky-high $60 a share in its IPO today, 200 percent above where it was priced, the market is bringing Zillow back down to reality. The shares are already 45 percent off that first trade, dropping down to around $33 in midday trading. Most investors never paid that $60. The shares almost immediately hit the mid-$40s this morning, but they’ve continied to decline. Anyone who chased this hot IPO on opening day was likely to get burned unless they were lucky enough to get some IPO shares allocated to them by their brokers at the $20 IPO price.
(IPO shares are priced by the investment banks, but then typically pop on the first trade, which is when most people can start buying them). The Zillow IPO is testing the waters for smaller public tech stocks. The market is feeling out it’s valuation. Update (2:03 PM): Of course as soon as I posted this the shares started trading up again. Zillow Soars 200 Percent In First Trade With Over $1 Billion Valuation. Shares of real estate listings site Zillow began trading on the NASDAQ under the symbol ‘Z’ today, opening at $60 per share. This gives the company a whopping $1.6 billion valuation. Zillow priced its IPO at $20 per share yesterday, after upping the pricing of its IPO to $16 to $18 per share, from the initial range of $12 to $14 per share.
While the stock price soared to $60 per share in first trade but has dropped to $43 per share. Zillow raised $69 million in the offering. According to Experian Hitwise, Zillow.com is the third most visited Real Estate site in the U.S and received 5.36% of Real Estate visits in March 2011, which is a 53% increase compared to March 2010. While Zillow is growing traffic, the company has been taking a loss in terms of net income for the past three years. But the company is cash-flow positive.
The company lost $12.8 million in 2009, and lost roughly half of that ($6.7 million) in 2010. Zillow Prices IPO At $20 Per Share, Now Valued At Nearly $540 Million. Real estate listings site Zillow has just priced its IPO at $20 per share, giving the company a $539 million valuation. Last week, the company upped the pricing of its IPO to $16 to $18 per share, from the initial range of $12 to $14 per share. Zillow, which will begin trading under the symbol “Z” on the NASDAQ tomorrow morning, will raise as much as $79.6 million in the offering.
The number of changes in Zillow’s pricing (and the steady increase in share value pre-IPO) is similar to LinkedIn and Pandora’s pricing increases. These companies saw fluctuations in the share value post-IPO (though both companies have rebounded in July). Other tech companies like HomeAway, Fusion-IO and Yandex didn’t post a number of changed in pre-IPO pricing and have seen steady share values. Zillow, which initially filed its S-1 in April, currently lists over 100 million U.S. homes, including homes for sale, homes for rent and homes not currently on the market. Zillow Ups IPO Pricing To $16 To $18 Per Share With Nearly $500 Million Valuation. Real estate listings site Zillow has just upped the pricing of its IPO to $16 to $18 per share, from $12 to $14 per share. This new pricing gives Zillow a valuation of nearly $500 million ($485 million to be exact). Zillow, which will begin trading under the symbol “Z” on the NASDAQ, aims to raise as much as $71.6 million in the IPO.
Zillow, which initially filed its S-1 in April, currently lists over 100 million U.S. homes, including homes for sale, homes for rent and homes not currently on the market. Zillow launched a mortgage marketplace in 2008, and subsequently expanded into rentals and mobile. The number of changes in Zillow’s pricing is similar to LinkedIn and Pandora’s pre-IPO pricing increases. And clearly both of those companies saw strong fluctuations in the share value post-IPO (though both companies have rebounded in July). Zillow Prices IPO Between $12 And $14 Per Share With Nearly $400 Million Valuation. Real estate listings site Zillow has just filed additional documents with the SEC indicating the initial range for the company’s upcoming IPO. Zillow’s price range will start at $12 to $14 per share, giving the company a $378 million valuation. The company aims to raise as much as $55.7 million in the IPO.
Zillow will begin trading under the symbol “Z” on the NASDAQ. Zillow, which initially filed its S-1 in April, currently lists over 100 million U.S. homes, including homes for sale, homes for rent and homes not currently on the market. Zillow launched a mortgage marketplace in 2008, and subsequently expanded into rentals and mobile.
The company’s traffic to its web and mobile sites is up 100 percent year-over-year and in May 2011, Zillow was used on a mobile device more than 8.8 million times, with more than 1.7 million homes viewed on mobile devices each day. The company lost $12.8 million in 2009, and lost roughly half of that ($6.7 million) in 2010. Zillow Expects To Price 3.46M Shares At $12-$14 A Share - Eric Savitz - The Tech Trade. Form S-1.