Zillow real estate value website sets IPO price
Startup Zillow that provides online information about real estate has set the price for its initial public offering of stock at $12 to $14 per share.
Zillow planned to sell 3.462 million shares of common stock, which would raise from $41.5 million to $48.5 million depending on share price, the firm said in a filing Wednesday with the US Securities and Exchange Commission.
The higher stock price valued the company at close to $400 million.
Zillow said that it will raise an additional $5.5 million in a private placement of stock with Technology Crossover Ventures.
The Seattle, Washington-based real estate valuation website launched in 2006.
Zillow.com is an online resource for estimated home prices, rental potential, tax records, sales histories and other information about US properties.
The website made its debut backed by 32 million dollars in venture capital funding and was co-founded by Richard Barton, creator of online travel service Expedia.
Zillow billed itself as the leading real estate information marketplace and said in the filing that it was "transforming the way people make home-related decisions."
Zillow said in the paperwork that it is not making a profit and reported a net loss of $865,000 in the three months ending March 31 of this year.
(c) 2011 AFP