Seattle’s Next Billion-Dollar Tech Star: Zulily Aims for $16-$18 IPO

11/1/13Follow @bromano

Zulily’s forthcoming initial public stock offering could raise as much as $238 million for the Seattle company and its insiders and investors.

The daily deals site for moms and kids today said it estimates an IPO price of $16 to $18 per share.

Investors will have a crack at 11.5 million shares when the Zulily floats on the NASDAQ, under the ticker symbol ZU. The four-year-old company itself is selling nearly 6.4 million shares which would bring in about $108.4 million at the midpoint offering price. Another 5.1 million shares—worth $87.1 million at the midpoint—are to be sold by insiders. Proceeds from these sales will not go to the Zulily treasury.

The IPO, announced Oct. 8 and expected to occur the week of Nov. 11, according to Renaissance Capital, would give Seattle another multi-billion-dollar tech company. At $17 a share, Zulily would have a market value of $2.2 billion.

Zulily’s updated SEC filings report third-quarter results. The company’s sales increased to $166.7 million in the three-months ending Sept. 29, up 120 percent from the same period a year ago. Its operating expenses meanwhile reached $46.8 million in the quarter—mostly for marketing—an increase of a little more than 70 percent. That helped Zulily narrow its quarterly loss to $2.3 million, compared to a loss in the year-earlier period of $7.4 million.

The company took in more than 3.65 million orders in the third quarter with an average value of $55.16.

Full disclosure: There’s a Zulily package sitting on my counter at home. I have no idea how it got there, but I’m sure my wife does.

Benjamin Romano is editor of Xconomy Seattle. Email him at bromano [at] xconomy.com. Follow @bromano

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