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Zillow Inc. (NASDAQ:Z), which operates a leading online real estate marketplace in the U.S., raised the proposed deal size for its upcoming IPO on Friday. The Seattle, Washington,-based company now plans to raise $59 million by offering 3.5 million shares at a price range of $16 to $18. The company had previously filed to offer 3.5 million shares at a range of $12 to $14. At the mid-point of the revised range, Zillow will raise 31% greater proceeds than previously anticipated. Zillow, which was founded in 2004 and booked $36 million in sales for the 12 months ended March 31, 2011, plans to list on theNasdaq under the symbol Z. Citi (NYSE:C) is the lead underwriter on the deal, which is expected to price the week of July 18.

Zillow's free website attracted 17.3 million average monthly unique users for the three months ended March 2011, up 86% over the year-ago period. Its database includes more than 100 million U.S. homes, including homes for sale, homes for rent and homes not currently on the market. Through a proprietary algorithm, Zillow determines an estimated value for each house, termed a "Zestimate." The company's revenues, generated from real estate and mortgage professionals (through subscriptions) and from brand advertisers, rose 74% from $17.5 million in 2009 to $30.5 million in 2010. After launching its first mobile application in April 2009, Zillow now operates popular mobile real estate applications across iPhone, iPad, Android and Blackberry devices.

Zillow prepares to enter the market following last month's successful IPO of online vacation-rental website HomeAway (NASDAQ:AWAY), which traded up almost 50% the first day after pricing at the high end of its range.

Zillow's upcoming deal joins a wave of recent Internet IPOs, with more expected to file in the coming months. The last time general interest in IPOs was as widespread as it is now was in the dot-com bubble just over10 years ago. It is tempting at first glance to compare the current environment to the bubble. However, there are significant differences between the two timeframes.

Source: Zillow Increases Proposed IPO Deal Size