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 launched a mortgage marketplace in 2008, and subsequently expanded into rentals and mobile.

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 yet to make a profit, and has been taking a loss for the past three years. This could be a factor in how the market reacts to Zillow tomorrow morning.

Underwriters for the include Citi, Allen & Company, Pacific Crest Securities, ThinkEquity LLC, and First Washington Corporation.