Shares of online real estate service Zillow more than doubled in their initial public offering on Wednesday, a familiar storyline for Internet companies that have recently gone public.
Zillow priced its offering at $20 per share on Tuesday night, a substantial increase from its initial range. But once again investor demand for fresh Internet stocks seemed to outpace supply, with shares opening at $57 and briefly trading above $60 before settling around $43 per share as of 10:50 a.m. ET.
The company raised around $69 million in the deal, and its opening surge values Zillow at more than $1 billion. Zillow generated $30 million in revenue in 2010 but was not profitable.