Zillow’s IPO Will Test Investors’ Appetite for Smaller Offerings
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Zillow Inc.’s initial public offering, slated to price today, will do more than raise money for the real estate website. It will signal whether other small dot-com companies can join the IPO frenzy.
Newly minted public companies LinkedIn Corp., Pandora Media Inc. and HomeAway Inc. all had valuations of at least $2 billion when they started trading, along with quarterly sales of more than $50 million. Zillow, which had first-quarter revenue of $11.3 million, will probably be valued at about $460 million.