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WebEx aims to raise $40 million in IPO

The 5-year-old company intends to sell an 11 percent stake for $12 to $14 per share.

WebEx, whose software allows for Web-based meetings enhanced with video, audio and teleconferencing, plans to sell 3.5 million shares in an initial stock sale.

The 5-year-old San Jose, Calif.-based start-up filed an amended filing with the Securities and Exchange Commission today to sell an 11 percent stake of the company for $12 to $14 per share.

WebEx, which employs 195 workers, hopes to raise $40.5 million in the offering, according to the filing. An offering date has not been set.

The market for Web-based collaboration services is expected to increase to approximately $42.8 billion in 2003 from approximately $14.5 billion in 1999, according to information included the filing that was attributed to International Data Corp. Competitors in the field include Centra Software and Akamai Technology.

WebEx--which last year signed drag queen RuPaul as company spokesmodel--has completed three rounds of financing totaling more than $57 million. Investors include SAP Ventures, Yahoo, Oracle and Tibco. For the first quarter of 2000, WebEx posted a net loss of $14.8 million on revenues of $2.2 million.

Goldman Sachs will be the lead underwriter for the sale. WebEx has applied to be listed on the Nasdaq under the symbol "WEBX."