Zillow, an online real estate information service, surged in its trading debut after selling shares above an increased price range in its initial public offering.
The company’s stock, trading on the Nasdaq Stock Market under the symbol Z, traded at $35.80 moments before the close on Wednesday, up 79% from its opening price, after earlier tripling to $60. Zillow raised $69.2 million on Tuesday selling 3.46 million shares at $20 apiece, above the offering range of $16 to $18.
Zillow joined Internet-based companies such as LinkedIn, Yandex and HomeAway in gaining at least 49% in first-day trading after IPOs this year.
LinkedIn gained 124% through Tuesday and HomeAway’s stock rose 53%.
Zillow saw sales more than double to $11.3 million in the quarter ended March 31. The net loss in the same period narrowed to $826,000 from $2.8 million, its IPO prospectus showed.
At the IPO price, Zillow’s market capitalization was about $540 million, based on the total number of shares outstanding following the offering. The company also completed a $5.5 million private placement to existing investors that might have a small effect on the total number of shares.
That market value makes Zillow much smaller than LinkedIn or Pandora were when they completed their IPOs earlier this year. LinkedIn’s offering valued it around $4.3 billion, and Pandora’s IPO gave it a market value around $2.6 billion.