Enter multiple symbols separated by commas

Zillow, Skullcandy IPOs Price Above Expectations

High-profile real estate website Zillow and headphone vendor Skullcandy both priced initial public offerings at higher-than-expected prices.

NYSE Traders
Oliver Quilla for CNBC.com
NYSE Traders

Zillow priced its IPO at $20 a share. The Seattle company had originally hoped to price its 3.5 million shares at $12 to $16 a piece, but upped the price by $4 per share last week. It will make its debut on the Nasdaq on Wednesday morning under the symbol “Z.”

Skullcandy also priced at $20 a share. The Park City, Utah, company sold more IPO shares than it had originally anticipated in an offering of 9.4 million shares. The company had expected to sell just 8.5 million shares in a range of $17 to $19.

IPO experts had expected both companies to price well.

“Given where we are in the macro economic cycle, classic growth stories are resonating well with investors, particularly companies that are approaching new industries, and have a product that is in high demand,” said Paul Bard, research director at IPO research and management firm Renaissance Capital. And in his view, Zillow and Skullcandy fit the bill.

Founded in 2004, Zillow is probably best-known for its "Zestimate," a proprietary home-valuation model it uses to provide estimated property values.

Zillow’s database holds information on more than 100 million U.S. homes, including homes for sale, homes for rent and homes not currently on the market.

Its free website attracted an average 17.3 million monthly unique users for the three months ended March 2011, an increase of 86 percent over the year-ago period, according to Renaissance Capital.

The company generates its revenue from subscriptions from real estate and mortgage professionals, as well as from brand advertisers. Zillow booked $36 million in sales for the 12 months ended March 31, compared to $17.5 million in 2009.

Skullcandy was founded in 2003 and booked $175 million in sales for the 12 months ended March 31, 2011, according to Renaissance Capital. It will trade on Nasdaq under the symbol "SKUL."

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Mark Cuban and Donald Trump

    Donald Trump appears to have Mark Cuban's vote, at least in terms of how the billionaire real estate mogul is conducting his political campaign.

  • Ferrari 488 Spider

    Ferrari's new 488 Spider will have a V-8 turbo engine and a retractable hard-top roof that lowers in just 14 seconds.

  • Members of the New Horizons science team react to seeing the spacecraft's last and sharpest image of Pluto before closest approach later in the day at the Johns Hopkins University Applied Physics Laboratory (APL) in Laurel, Maryland July 14, 2015.More than nine years after its launch, a U.S. spacecraft sailed past Pluto on Tuesday, capping a 3 billion mile (4.88 billion km) journey to the solar system's farthest reaches, NASA said.

    The New Horizons Pluto flyby mission set records for NASA's social media and web metrics——but why do we care so much?

U.S. Video

  • Wall Street awaits Fed, snaps losing streak

    The stock market has broken its five-session losing streak, but the fate of today's trading will likely rest in the hands of the Fed, which releases its post-meeting policy statement this afternoon.

  • Delivering Alpha unfiltered: Global Opportunity

    Complete video of Andrew Ross Sorkin's panel on how to navigate the wide array of global investment challenges that investors face featuring Chris Ailman, Mary Callahan Erdoes, Eric Mindich and Richard Perry.

  • Cramer: Signs point to another rally

    Mad Money host Jim Cramer shares his view of the market rally in Tuesday's trading session. Finally we have a good setup, he says.