Is online toy retailer eToys really worth a billion dollars? The company thinks so. What’s more, it thinks its worth a billion dollars even before its initial public offering. Imagine what’s going to happen if this stock takes off like other Internet IPOs.
eToys filed with the SEC on Monday to sell 8.2 million shares at $10 to $12. With 101.6 million shares outstanding after the stock sale, this would give the company a market value of more than $1 billion.
Of course, that number could quickly grow. High demand for Internet IPOs recently has led to pricing increases that have doubled the offering price of some companies.
Who knows what eToys will end up being valued at? This is already starting to seem like a little much for a company that hasn’t turned a profit and is competing for spending dollars with major auction houses.