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Webvan IPO hits roadblock
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October 7, 1999: 6:59 a.m. ET
Report: Online grocer's $4B stock debut postponed due to SEC worries
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LONDON (CNNfn) - The stock market debut of online grocer Webvan was canceled this week because U.S. regulators are unhappy with the way the company marketed its shares, according to a press report Thursday.
In particular, officials at the Securities and Exchange Commission were concerned that senior executives have recently given interviews to magazines Forbes and Business Week, according to the report in the Wall Street Journal. Such action allegedly contradicts SEC requirements that companies undergo a "quiet period" prior to listing.
The newspaper, citing sources close to the agency, also pinpointed concerns over the financial information Webvan executives have been revealing to institutional investors while on company "road shows" to promote the stock issue.
The newspaper reported that investors were shown information that isn't available in the company's prospectus. The data was reported to be extremely bullish on the prospects for Webvan.
SEC and Webvan officials refused to comment on how long a "cooling-off" period there could be before Webvan completes its IPO, although some sources said a delay of up to two weeks is likely.
The IPO is expected to value Webvan at around $4 billion.
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Webvan
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