Zulily prices IPO at $22 per share
The Seattle e-commerce company priced its stock at $22 apiece, above an increased price range.
Seattle-based Zulily raised $253 million in its initial public offering after pricing the shares above an increased range.
The e-commerce company and some stockholders sold 11.5 million shares for $22 apiece, according to data compiled by Bloomberg.
Zulily, which runs a shopping website targeted at moms, had raised the price range of the shares to $18 to $20 Wednesday, compared with an initial range of $16 to $18. The shares, listed on the Nasdaq Stock Market under the symbol ZU, will start trading Friday.
Investors have shown a mixed appetite for consumer Internet stocks over the past week. Twitter, the microblogging Web service with 230 million monthly active users, surged 73 percent in its Nov. 7 debut, while textbook-rental site Chegg slumped 23 percent Wednesday in its first day of trading. Unlike these two companies, Zulily recently turned a profit.
Zulily operates daily flash sales with 4,500 products from children’s and women’s apparel to kitchen accessories, according to its prospectus.
Sales more than doubled to $439 million in the first nine months of the year from the same period a year earlier, the filing shows.
The company may use the proceeds of the stock sale to buy complementary businesses or technologies, as well as for general corporate purchases.
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, will continue to hold more than 20 percent of the voting power following the IPO, the prospectus shows, while Vadon, the chairman, will have more than 30 percent.
Goldman Sachs, Bank of America and Citigroup managed Zulily’s IPO.