Zulily (ZU) Rockets 88% on First Day

Shares of Zulily Inc. (ZU) closed up +17.70 or +88.5 percent to $37.70 per share after its initial public offering on Friday. The stock traded as high as $41.32 during its first day of trading on the Nasdaq stock market. The companyâ s had priced the IPO on Thursday night at $22 per share after the company had raised the initial offering price twice, from $16-$18 originally, to $18-$20.

After selling 11.5 million shares, Zulily raised $253 million initially, valuing the company at $2.6 billion. After the sharp rise on Friday, the company is now valued at over $5 billion. Zulily is the first successful IPO for an e-commerce company in a long time.
Seattle, Washington based Zulily was launched in 2010 and is an e-commerce company specializing in flash sales of clothing, infantâ s toys and home decorations. The company features 1.6 million product styles from over 10,000 brands for a total of more than 42 million items marketed to 2.9 million customers. Zulily has had phenomenal growth since its launch. In December of 2012, the company was valued at $1 billion after sales had almost tripled from 2011, going from $132.4 million to $331.2 million in 2012. The company had originally raised $369 million from August Capital, Meritech Capital Partners, Maveron, Trinity Ventures and Andreessen Horowitz. Even though Zulily has some tough competition in the online world, with Amazon.com (AMZN) and eBay Inc. (EBAY), the company has enough specialization in its product line to hold its own. Catering primarily to moms and childrenâ s products the website already has a large number of active members. Zulily CEO, Canadian Darrel Cavens, formerly of jewelry website Blue Nile (NILE), uses speed, or what he calls â

Published on Nov 18, 2013
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2016. Content published with author's permission.

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