Barnesandnoble.com (Proposed ticker: BNBN) priced its IPO of 25 million shares at $18 a share late Monday. Shares will begin trading on Tuesday.
Lead underwriter Goldman Sachs upped the price range to $16 to $18 from $11 to $13 earlier on Monday.
Analysts said Barnesandnoble.com's offering will be hot as Wall Street hopes the company can replicate Amazon.com Inc.'s (Nasdaq: AMZN) success.
"Barnesandnoble.com will do well because it has a brand name, but it's about two years behind Amazon," said Steven Tuen, research director for IPO Value Monitor.
Not surprisingly, Amazon and Barnesandnoble.com sound a lot alike.
In regulatory filings, Barnesandnoble.com said it plans to expand into new markets such as music, video and software. It also plans on pursuing acquisitions, joint ventures and other similar strategic investments and relationships with complementary businesses and companies.
Amazon has expanded its product offerings and bought stakes in upstarts such as HomeGrocer.com, Pets.com and Drugstore.com.
But Barnesandnoble.com derived 98 percent of its revenue from bookselling in 1998. The company launched its magazine and software online stores during 1998, and began a limited introduction of music and video products in late 1998. The full rollout is scheduled for 1999.
Barnesandnoble.com's first quarter sales were $32.3 million compared Amazon's $293.6 million. Barnesandnoble.com said it is still trying to catch up to Amazon, citing Amazon's "longer online operating history and larger existing customer base."
Barnesandnoble.com lost $20 million in the first quarter. For 1998, Barnesandnoble.com lost $83 million on sales of $61.8 million. Since inception, the company has accumulated net losses of $116.9 million through March 31.