Zulily Inc (ZU) IPO Jumps 87.5% On First Day Of Trading
Zulily Inc (NASDAQ:ZU) jumped 92% in trading on Friday due to investor enthusiasm for the e-commerce website. Zulily is known for selling clothes tailored for babies, kids, and moms. Zulily shares jumped $18.39 to $38.39 during midday trading.
Before the IPO, Zulily increased their pricing to $22 per share from the previously set $20 price. When the stock market closed, Zulily shares were up $17.51 at $37.52 (87.5% up). Zulily sold 11.5 million shares at $22 each, thus raising $253 million. Around $140 million are going to Zulily’s investors.
“The business has been profitable; we’ve been cash-flow positive for the past few years,” stated CEO and founder Darrell Cavens. “That’s one of the pieces of the story that’s different than what’s out there. We’ve got growth paired with the bottom line.”
Zulily reported $331 million in revenues for 2012, which is up 132% from a year before that. During the first nine months of 2013, Zulily reported $438.7 million in revenues. Zulily’s mobile orders are at 45% of the total.
Zulily sends out daily deals through e-mail. The e-mails contain curated items that Zulily claims is 50% below retail prices. Zulily has a merchandising team of around 300 employees.
Zulily hit around 2.6 million active customers in September 2013. Zulily’s customer base is up from 1.6 million active customers in 2012 and 791,000 in the year before. Zulily launched in January 2010.
Zulily is trading under the Nasdaq ticker symbol “ZU.”