Zillow Shares Surge After IPO

Zillow Inc. surged its first day of trading as the real-estate website limited the number of shares being sold despite high demand, giving the unprofitable Internet company a valuation of more than $1 billion.

Zillow's tiny 3.5-million-share deal opened at $60 on Nasdaq, triple its $20 IPO price. The stock quickly shed some of its early gains, and continued to edge lower as the hours ticked by; it was changing hands recently at $38.84, up 94%.

Though there was great demand for the IPO—the stock priced above the expected range of $16 to $18 a share, even after that level was boosted by $4—the company didn't add more shares to its deal.

Zillow is the latest in a string of hot consumer Internet companies this year that has kept a tight lid on the number of shares it floats in its IPO, a strategy that results in outsized demand for a limited supply.

Read Full Article from Wall Street Journal

- Posted: 2011-07-20 13:43:50

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