‘Tis the season for online initial public offerings, it seems. Following action by LinkedIn, Pandora and HomeAway – not to mention early moves by LivingSocial and Zynga, and rumours about Facebook – online real estate listings company Zillow is pushing its numbers higher. From an initial pricing range of $12 to $14 per share, Zillow has upped the ante to $16 to $18, according to TechCrunch.
1. Small money: at least compared to its recent predecessors, Zillow isn’t looking to make a huge move. The higher IPO price per share translates to a valuation of $485 mn, and the company is looking to pull in $71.6 mn in fresh capital.
2. Lots of inventory: Zillow has more than 100 mn US homes listed – some of which are rentals and others aren’t even on the market.
3. Mortgage money: Zillow launched a mortgage marketplace three years ago, which has since grown to include rentals and mobile.
4. Seeing red: like Pandora and Groupon, Zillow is operating at a loss (for the third year in a row). But, it is showing strong traffic growth and is among the top three real estate websites in the US as measured by visits.
5. NASDAQ: in a departure from the NYSE choice made by LinkedIn and Pandora, Zillow has opted for the NASDAQ and will trade under the symbol ‘Z’.