WebVan Back on the Road to Public Offering

The revamped initial public offering of online grocer WebVan Group Inc. (ticker symbol: WBVN), which was delayed in early October, is expected to be priced today amid fanfare as investors are drawn to its list of heavyweight backers. Underwriter Goldman Sachs confirmed the target pricing range of $11 to $13 a share for the IPO, which was put off after the Securities and Exchange Commission expressed concern about publicity surrounding the deal.

WebVan, which sells everything from live lobsters to premium cigars, plans to offer 25 million shares. The IPO represents an 8% stake in the Foster City, Calif.-based firm. Bookstore chain Borders Group Inc. founder Louis Borders is WebVan’s chairman, and George Shaheen, former Andersen Consulting head, is the online grocer’s chief executive. The list of venture capitalists attached to the deal, which includes Benchmark Capital Partners and Softbank America Inc., has built enthusiasm for the offering.

“I think it will get a good response, partly because it has backing by some of the largest [investors] in the Internet space,” said Steven Tuen, an analyst at IPO Value Monitor.

Closely held rival HomeGrocer.com Inc., meanwhile, received $100 million from a group of investors to help it expand into about 20 new cities next year. Most of the financing comes from previous investors, including Amazon.com Inc., venture capital firms Kleiner Perkins Caufield & Byers and Hummer Winblad Venture Partners, and the investment group of former Netscape Communications CEO James Barksdale.