initial public offering today, and saw its shares gain more than 13 percent
on its first trade, as online
in the wings for its IPO, scheduled to launch in two weeks.
NetGrocer also jumped into the public fray today, filing for an IPO of its own. The online service, which allows customers to order dry goods and have them delivered, is looking to raise $37.9 million based on its registration fee. The company, which posted revenues of $406,639 and a net loss of $3 million for the quarter ended March 31, also is receiving an undisclosed investment from America Online via a private placement related to the pending IPO.
The public offering by Cyberian and the upcoming offering by GeoCities are expected to add to the hot summer of Internet IPOs, as the rest of the IPO market continues to suffer a lackluster season. The IPOs from Cyberian and GeoCities also come at a time when the tech-heavy Nasdaq has been edging down from a
mid-July high, during which it topped the 2,000 mark.
Cyberian, which priced at 18 a share, soared to 25 on its first trade of
the day--gaining almost 39 percent. It later settled back somewhat, closing
the day at 20.5, up 2.5. The percentage of its first trade gain exceeded
the performance of other IPOs during the month of July, which averaged an
18 percent gain, said Richard
Peterson, an IPO analyst with Securities
But the online computer retailer couldn't match the IPO of Broadcast.com, which priced at 18 a
share and surged
fourfold on its first trade of the day, to 74 a share.
Cyberian's IPO, based on the company's target price of 18 a share and 4
shares floated out, raised $72 million in capital. The IPO also gave the
company a market value of $396.3 million, based on its 22 million shares
outstanding. Underwriters in the deal included BT Alex Brown, Montgomery Securities, and
Dain Rauscher Wessels.
The company's performance may bode well for other Internet companies slated
to go public. Cyberian's offering was priced on the high end of its latest
pricing range of between $17 and $18 a share, a jump from its initial
pricing range of between $13 and $15 a share.
Of the 47 IPOs floated this month, only six came out above their pricing
range, while 16 came in below, Peterson said.
"Cyberian is the first one since Broadcast.com to get priced above its
range," he added.
GeoCities, for its part, is
expected to go public the week of August 10, a source said.
The company recently completed its European road show, during which its
executives made presentations about its business to potential investors.
On Monday and Tuesday, the road show moves to San Francisco and Los
Angeles, before heading to the East Coast.
GeoCities is looking to raise up to $66.5 million with its initial public
offering. The online community site said it wants to float out 4.75 million
shares, and has set a pricing range of between $12 and $14 a share.