So much for the cooling-off period. The initial public offering of online grocer Webvan was originally scheduled for last month, but it was postponed after the TheStreet.com reported that the company was revealing information during its roadshow that was not in its prospectus. The SEC then forced Webvan to wait out a so-called cooling-off period.
Well, Webvan is set to open for trading today, and the IPO looks as hot as ever. The company priced 25 million shares at $15, the top end of its revised range of $13 to $15 after an original range of $11 to $13.
Webvan should be a rather strong performer on Friday. The company has generated lots of buzz, largely thanks to its heavyweight investors, which include Softbank and Sequoia Capital, and a board of directors that includes founder Louis Borders and top executives from Yahoo! and E*Trade. However, investors should realize that Webvan’s valuation is already rather rich for an early-stage company that currently only serves the San Francisco Bay Area. At $15 a share, the company is already worth $4.7 billion dollars.