eToys prices IPO at $20 per share

The online toy retailer prices its initial public offering at $20 a share, settling on the high-end of a range that it earlier increased by a wide margin.

Dawn Kawamoto
Dawn Kawamoto Former Staff writer, CNET News
Dawn Kawamoto covered enterprise security and financial news relating to technology for CNET News.
Online toy retailer eToys today priced its initial public offering at $20 a share, settling on the high-end of a range that it increased by a wide margin earlier today.

The company expects to raise $166.4 million from the 8.32 million shares it will offer in its IPO. EToys will begin trading tomorrow under the ticker "ETYS."

EToys earlier in the day raised its pricing range to $18 to $20 per share from $10 to $12, signaling high demand for another Internet IPO.

One of the last Internet IPOs to see such a dramatic increase in its pricing range was iVillage, a women's online network. The company raised its range to $22 to $24 a share from an initial range of $12 to $14 a share. Like eToys, iVillage priced at the high end of its range. It then went on to jump to $95.88 on its first trade of the day, before closing at $80.13.

Goldman Sachs, BancBoston Robertson Stephens, Donaldson, Lufkin & Jenrette and Merrill Lynch are underwriters in the deal.

In its latest filing, eToys said last month it hired Janine Bousquette as senior vice president of marketing. Bousquette previously served as an executive in "="" rel="nofollow" target="_blank">PepsiCo's marketing department.

Although the IPO was initially set to go out in late April, it was delayed after the company announced it would acquire baby supplies retailer BabyCenter.

Companies that are expected to gain from the IPO are early investors Idealab, an Internet start-up incubator firm that will hold an 18 percent stake, and chip giant Intel, which will hold 7.56 percent.

Reuters contributed to this report.