The tech IPOs continue, with the Zillow’s successful offering Tuesday, July 19. Reuters reports that the online real estate valuing company saw substantial interest, easily beating the company’s proposed stock price.
Unlike some of the other companies to conduct an initial public offering in the past few months, Zillow is relatively small, initially expecting to be valued at only around $460 million, according to Bloomberg. Nonetheless, Reuters reports that in the lead up to the IPO, Zillow steadily raised its price from $12-$14 to $16-$18 until eventually settling at $20 per share, a market value of around $940 million.
In initial trading, prices started as high as $46.56 before eventually settling between $33 and $35, where it has stayed since.
Bloomberg notes that the smaller Zillow offering represents a sort of test for the online market. Continued strong interest could encourage additional smaller companies to conduct an IPO, rather than look for further venture capital. In particular, the fact that Zillow has yet to post a profit relates it to many other companies that might find themselves in need of capital.