X

Webvan set to deliver its IPO this week

The online grocer is expected to begin public trading Thursday after an SEC-imposed cooling off period delayed last month's launch.

Dawn Kawamoto Former Staff writer, CNET News
Dawn Kawamoto covered enterprise security and financial news relating to technology for CNET News.
See full bio
Dawn Kawamoto
Online grocer Webvan is expected to launch its public offering this week, a move that comes after a month's delay following a "cooling off" period requested by securities regulators.

According to a spokeswoman for Goldman Sachs, the company's underwriter for the offering, Webvan is anticipated to price Wednesday and begin trading the following day under the ticker symbol "WBVN." The company intends to sell 25 million shares for between $11 to $13, raising up to $325 million.

The eagerly anticipated IPO was postponed last month, after the Securities and Exchange Commission requested a cooling-off period because of publicity surrounding the offering.

Although the company competes against such players as Peapod, NetGrocer, and HomeGrocer, analysts have praised the company's efficient distribution system.

Webvan also garnered attention for hiring George Shaheen as its new chief executive. Shaheen was previously CEO of Andersen Consulting.

Webvan posted revenues of $395,000 for the six months ended June 30, compared with zero a year ago. Webvan lost $35.1 million during that period, compared with a loss of $3.26 million a year ago.