Zulily raises IPO target as high as $230 million
The Seattle company increased the amount it’s seeking in an initial public offering to as much as $230 million a day before it is expected to set a price for the shares.
Zulily, the Seattle company that runs a shopping website targeted at moms, increased the amount it’s seeking in an initial public offering to as much as $230 million, a day before it is expected to set a price for the shares.
The company is offering 11.5 million shares for $18 to $20 apiece, according to a regulatory filing Wednesday. Zulily had previously set an offering range of $16 to $18 each. The shares will be listed on the Nasdaq Stock Market under the symbol ZU.
Zulily operates daily flash sales with 4,500 products from children and women’s apparel to kitchen accessories. Sales doubled to $439 million in the first nine months of the year, from a year earlier, the filing showed. Zulily, which launched its website in 2010, is still unprofitable.
Investors have snapped up shares of Internet companies this year, pushing the Bloomberg Americas Internet Index, which includes Groupon and Amazon.com among its members, to a record last month. The benchmark is up 43 percent so far in 2013, compared with a 24 percent gain for the Standard & Poor’s 500 index.
At the top end of the new offering range, Zulily would be valued at $2.44 billion.
RetailMeNot, a provider of online coupons from more than 60,000 retailers and brands, has gained 53 percent through Wednesday since its debut July 19. Instant-payment operator Qiwi from Cyprus, whose American depositary shares started trading in the U.S. on May 3, has more than doubled.
Chegg, which rents textbooks and provides digital homework help to college students, on Tuesday priced its $187.5 million IPO above the range at which they were originally offered. The shares fell 22.6 percent in Wednesday’s debut.
Zulily, led by co-founders Darrell Cavens and Mark Vadon, is backed by venture-capital firms Andreessen Horowitz, Maveron and August Capital. Cavens, Zulily’s chief executive officer, holds more than 20 percent of the voting power at the company, while Vadon, the chairman, owns over 30 percent.
Zulily may use the proceeds to buy complementary businesses or technologies, the prospectus shows, as well as for general corporate purposes.
Goldman Sachs and Bank of America are managing the IPO.