Autoweb.com shrs leap after IPO
NEW YORK, March 23 (Reuters) - Initial public offering Autoweb.com Inc (Nasdaq:AWEB - news) leaped 167 percent in afternoon trade, ignoring a broad market decline Tuesday.
The Internet automobile dealer was among the top percent gainers on the Nasdaq, jumping $24 to $38 mid-afternoon, after trading as high as $44.
"The stock was a bit lower at the beginning of trading...on
a day of trading where things are down," David Menlow at the IPO Financial Network in Millburn, N.J. said.
''But Internet stock traders will not fear that the market will unravel in front of their eyes...it has nothing to do with Internet stocks,'' he added.
The $70 million launch -- 5 million shares at $14 a piece -- was underwritten by Credit Suisse First Boston.
Autoweb.com has 23.4 million shares outstanding after today's public offering.
Another car dealer who has resorted to the Web and is expected to go public tonight for Wednesday's trading is Autobytel.com, a deal underwritten by Alex. Brown.
The company plans on offering its 4.5 million shares at $20 to $22 each after the market close today for Wednesday's trade.
In a sign of strong demand, Autobytel.com had increased its price range from the original $16 to $18.
''Autobytel will do even better (than Autoweb.com)...it has been the cornerstone of automobile Websites...Autoweb's performance will probably strengthen its performance even further,'' Menlow said.
Internet auto sellers have been gaining in popularity because of their competitive prices and because people enjoy shopping for vehicles without feeling pressured by aggressive sales people, analysts say.
The companies are similar in terms of their product and revenue stream, although Autobytel is slightly larger.
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