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