Industry News

ZipRealty goes public

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Shares of ZipRealty Inc. priced at $13 each, rose as high as $17.50 in early trading and were at $16.10, a gain of $3.10, or 23 percent, at noon Eastern time today. ZipRealty filed for an offering of 4.55 million shares. Trading volume of Zip stock is strong today at 3.4 million shares. The Emeryville, Calif.-based company expects to net proceeds of about $44.5 million from the IPO, and said it will use money raised from the offering to generate working capital. Zip also said it might use some of the proceeds for potential acquisitions. Zip has been in the brokerage business since 1999. The company warned investors in its SEC filings that its "Internet-enabled residential real estate brokerage business model remains relatively unproven" and that it will have to continue to recruit, hire and retain qualified agents and maintain access to MLS home listings in order to grow. "In addition, economic trends could have an impact on our business; for example, an increase in interest rate...