DoveBid shelves IPO plans again

This is the second time the company has withdrawn its initial public offering. DoveBid's underwriter cites market conditions for the postponement.

Margaret Kane
Margaret Kane Former Staff writer, CNET News
Margaret is a former news editor for CNET News, based in the Boston bureau.
Online auctioneer DoveBid has postponed its initial public offering, the company's underwiter confirmed Thursday.

A representative for lead underwriter J.P. Morgan Securities said the IPO has been postponed "pending market conditions" and did not give any further information.

DoveBid allows companies to auction off surplus or unused assets online. It handles a variety of goods, but has gotten most of its press for running auctions for failed businesses such as Excite@Home, Webvan and Enron.

This is the second time the company has withdrawn its IPO. It pulled back in May 2001, also citing market conditions. The latest offering was supposed to raise between $48 million to $60 million for the Foster City, Calif.-based company.

DoveBid reported revenue of $27.5 million in the quarter ended June 30, up from $18.7 million in the year-ago quarter. The company lost $265,000, compared with a year-ago loss of $5.2 million.

As of June 30, it had $6.9 million cash on hand. The company has historically met its cash flow needs through combination of private sales of convertible preferred stock, and to a lesser extent, credit.

Since June 1999, DoveBid raised approximately $145.5 million of cash through the sale of convertible preferred stock.