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By Bloomberg News January 15, 1999, 7:40 p.m. PT Autobytel.com revived plans for an initial stock offering, more than one and a half years after canceling earlier plans. The Irvine, California-based company filed with the U.S. Securities and Exchange Commission to raise about $72 million by selling 4.5 million shares to new investors for an estimated $16 apiece. At that price, the company would have an implied market value of $285.7 million, based on about 17.9 million shares to be outstanding after the stock sale. Before adding .com to its name, the company then known as Auto-By-Tel Corporation initially filed to go public in January 1997, estimating it would raise as much as $44 million by selling 4 million shares for $9.50 to $11.00 each. It postponed the offering in April 1997, citing "unfavorable stock market conditions." Since then, Internet-related IPOs have won a gravity-defying reputation as market high-fliers. Today, for example, shares of MarketWatch.com, a financial news Web site, soared to as much as 130 in the first day of trading after an initial offering at $17 per share. At day's end, MarketWatch shares had risen 87.5 to close at 97.5. "The market has changed" since Autobytel.com's initial filing, said David Menlow, president of Millburn, New Jersey-based IPO Financial Network. "Then, the Internet was still emerging. Now it has made believers of a number of people. Investors are looking for a new concept and a new technology, so if they get an inkling that Autobytel.com represents one of those two areas, then it will be an even larger draw." Founded by Peter Ellis, the company operates a Web site that lets consumers get information on cars and light trucks and shop for vehicles from their homes. The Internet services are free to consumers. Autobytel.com makes money from auto dealerships that pay to be part of its referral service. The company said it will use proceeds from the stock sale for advertising, to develop its Web site, and to offer new products and services. Autobytel.com itself will offer 3.5 million shares in the offering, and existing shareholders will sell 1 million shares. The company won't receive proceeds from stock sales by the existing shareholders. Since April 1997, when the company abandoned its plans to go public, Autobytel.com's dealer network has more than doubled to 2,718 paying dealers today from 1,206 in 1997, according to regulatory filings. Autobytel.com has also switched to a new underwriting group that includes BT Alex. Brown, Lehman Brothers, and Paine Webber. The market for new and used vehicles was more than $670 billion in 1997, representing the sale of more than 50 million cars and trucks, according to estimates provided in the filing. Autobytel.com, which also markets car insurance over its Web site, hopes to benefit as online shopping takes hold. Autobytel.com had net losses of $15.5 million in the nine months ended September 30, 1998, compared with net losses of $12.7 million in the year-earlier period. The company had revenue of $16.5 million in the first nine months of 1998, compared with revenue of $10.7 million in the first nine months of 1997. Mark W. Lorimer, 39, serves as Autobytel.com's president and chief executive officer. He was a partner at the law firm Dewey Ballantine before joining the company. Michael Fuchs, former chairman of Time Warner's Home Box Office cable television unit, is chairman. The executives each control about 1 percent of the company before the offering. Founder Ellis holds 4 million Autobytel.com shares, or a 28 percent stake, making him the largest stockholder before the IPO. Autobytel.com plans to have its shares trade on the Nasdaq Stock Market under the symbol ABTL. | ||||||||||||||
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