Tags: Zulily | IPO | sales | flash

Zulily Raises $253 Million, Pricing IPO Above Increased Range

Friday, 15 Nov 2013 12:04 PM

Zulily Inc., which runs a shopping website targeted at moms, raised $253 million in its U.S. initial public offering after pricing the shares above an increased range.

The e-commerce company and some stockholders sold 11.5 million shares for $22 apiece, according to data compiled by Bloomberg. Zulily raised the price range of the shares to $18 to $20 yesterday, compared with an initial range of $16 to $18. The shares, listed on the Nasdaq Stock Market under the symbol ZU, will start trading tomorrow.

Investors have shown mixed appetite for consumer Internet stocks over the past week. Twitter Inc., the microblogging web service with 230 million monthly active users, surged 73 percent in its Nov. 7 debut, while textbook-rental site Chegg Inc. slumped 23 percent yesterday. Unlike these two companies, Seattle-based Zulily recently turned a profit.

Zulily operates daily flash sales with 4,500 products from children’s and women’s apparel to kitchen accessories, according to its prospectus. Sales more than doubled to $439 million in the first nine months of the year from the same period a year earlier, the filing shows. The company may use the proceeds to buy complementary businesses or technologies, as well as for general corporate purchases.

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, will continue to hold more than 20 percent of the voting power following the IPO, the prospectus shows, while Vadon, the chairman, will have more than 30 percent.

Goldman Sachs Group Inc., Bank of America Corp. and Citigroup Inc. managed Zulily’s IPO.

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Zulily Inc., which runs a shopping website targeted at moms, raised $253 million in its U.S. initial public offering after pricing the shares above an increased range.
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2013-04-15
Friday, 15 Nov 2013 12:04 PM
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