Underwriter: HomeAway IPO Prices at Top of Range

Vacation rental website operator HomeAway Inc priced its initial public offering at the top of the expected range on Tuesday, an underwriter said.

Texas-based company and its shareholders sold 8 million shares for $27 each, the underwriter said, raising $216 million.

They had planned to sell shares for $24 to $27 each.

HomeAway’s websites, which include HomeAway, VRBO, VacationRentals.com, FeWo-Direkt and Holiday-Rentals among others, represent more than 560,000 paid vacation rental home listings in more than 145 countries.

Backed by firms venture capital firms, including Austin Ventures and Redpoint Ventures, HomeAway claims to be the largest online marketplace for the vacation rental industry. In the three months ended March 31, the company posted a net loss to common stockholders of $7.5 million on total revenue of just under $52 million.

The company had said in a filing that it planned to issue 5.9 million new shares for the 8 million share offering. The remaining shares were to be sold by executives and shareholders including Chief Executive Brian Sharples.

HomeAway had said it planned to use its share of the IPO proceeds to redeem shares of preferred stock, pay dividends and for corporate purposes.