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Webvan IPO priced higher
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November 4, 1999: 11:29 a.m. ET
Offer delayed until Friday, price is boosted to $13-$15 range
By Staff Writer Michele Masterson
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NEW YORK (CNNfn) - The target price for Webvan's shares has been boosted to the $13-$15 range and the company's expected IPO has been postponed for another day.
The Foster, City, Calif., Internet grocer had been expected to start trading its shares Thursday in the $11-$13 per share range, projected to raise $325 million for the company.
Instead, the IPO will be priced Thursday night in the $13-$15 range and will begin trading Friday, according to Goldman, Sachs, Webvan's lead underwriter. Goldman wouldn't give a reason for the IPO's delay.
Webvan will trade on Nasdaq under the symbol WBVN.
The Web grocer's IPO has been plagued with problems since it was filed with the Securities and Exchange Commission (SEC) in early August.
Originally slated to offer shares in October, the company incurred the SEC's wrath after an article was published on the Internet accusing its executives of disclosing information not available in the prospectus.
Webvan then agreed with the SEC to a cooling-off period .
"In an article in a securities industry Internet periodical dated Oct. 6, 1999, information regarding this offering and Webvan was published," the company said in an amendment it filed with the SEC Oct. 21. "This article was published without our consent…the article published these statements in isolation and did not disclose the related risks and uncertainties described in this prospectus."
On Oct. 18, Forbes magazine ran an article about Webvan CEO and President George Shaheen quoting his comments about electronic commerce and his former employer, Andersen Consulting.
The Oct. 21 SEC amendment referred to the article and appeared to distance itself from Shaheen's comments.
"The company has received and may continue to receive, a high degree of media coverage, including coverage that is not directly attributable to statements made by Webvan's officers and employees.
"To the extent any such statements are inconsistent with or conflict with, the information contained in the prospectus or relate to information not contained in this prospectus, they are disclaimed by us and the underwriters."
Earlier this week Webvan's main rival, Kirkland, Wash.-based HomeGrocer, received $100 million in venture capital from several investors, including Kleiner Perkins Caufield & Byers, Hummer Winblad Venture Partners, Barksdale Group and Internet retailer Amazon.com Inc. (AMZN). 
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