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). Some tech companies like HomeAway, Fusion-IO and Yandex have seen steady share values.
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. Clearly, Zillow has impressive traffic and is growing revenue but has yet to make a profit, and has been taking a loss for the past three years. These could be factors in how the market reacts to Zillow next week.
Zillow, Inc. founded and operates Zillow.com – a leading online real estate marketplace dedicated to helping homeowners, buyers, sellers, renters, real estate agents, mortgage professionals, landlords, and property managers find and share vital information about homes, real estate, and mortgages. Zilow, Inc. also operates Zillow Mortgage Marketplace and Zillow Mobile. Rich Barton and Lloyd Frink started Zillow in early 2005, and Zillow.com launched in early 2006 with data and information on millions of U.S. homes. Zillow’s goal is to help...