Online auctioneer eBay has announced plans to raise up to $56 million in capital through a proposed initial public offering that could be floated out in late September.
The IPO, which is expected to be keenly watched by the investment community, set an initial pricing range of between 14 and 16 a share for its 3.5 million shares, according to a recent filing with the Securities and Exchange Commission. Sources said the IPO may launch during the week of September 21.
The company plans to have 39.7 million shares outstanding, which, based on the high-end of its pricing range, would give it a market capitalization of $635.8 million.
The company is a rarity among Internet companies looking to go public in that it already is booking profits. During the first six months of 1998, eBay posted profits of $348,000 on revenues of $14.9 million, compared with profits of $874,000 on revenues of $5.7 million reported for the same period last year.
eBay generates revenues by receiving a priced-based fee for running online auctions at its site, which now conducts more than 500,000 simultaneous auctions in 846 categories.