Zillow to Offer 2.5 Million Shares in Secondary Offering
Real estate website Zillow Inc. (NASDAQ:Z) announced Monday morning that the company will sell 2.5 million shares in an underwritten offering and existing shareholders will sell an additional 2.5 million shares at the same time. The underwriters will be granted a 30-day option to purchase an additional 753,522 shares.
Zillow plans to use the net proceeds from its share of the offering for general corporate purposes and may also use a portion for acquisitions or investments “that complement its business.” The largest of the selling shareholders is Technology Crossover Ventures, which is selling 1.5 million shares. Company directors and executives are selling the rest of the shares.
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The company apparently could not wait to spend some cash. Zillow also announced this morning that it will acquire a New York City-focused online real estate firm named StreetEasy for $50 million in cash. The transaction is expected to close in the next few weeks.
Zillow’s share price has soared by more than 200% in 2013 and is up nearly 150% in the past 12 months. The 52-week high is $97.29 and the stock closed at $91.22 on Friday.
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Shares are trading down about 3% in the premarket on Monday morning to $88.37. The 52-week low is $23.00, which was posted last November.
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