Zulily Raises IPO Target as High as $230 Million

Zulily Inc., which runs a shopping website targeted at moms, increased the amount its 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 Seattle-based company is offering 11.5 million shares for $18 to $20 apiece, according to a regulatory filing today. Zulily had offered the shares for $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 Inc. and Amazon.com Inc. 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 Inc., a provider of online coupons from more than 60,000 retailers and brands, has gained 51 percent through yesterday since its debut on July 19. Instant-payment operator Qiwi Plc from Cyprus, whose American depositary shares started trading in the U.S. on May 3, has more than doubled.

Chegg’s Slump

Chegg Inc., which which rents textbooks and provides digital homework help to college students, yesterday priced its $187.5 million IPO above the range at which they were offered. The shares fell as much as 18 percent in today’s debut.

Zulily, led by co-founders Darrell Cavens and Mark Vadon, is backed by venture-capital firms Andreessen Horowitz, Maveron LLC 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 Group Inc. and Bank of America Corp. are managing the IPO.

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