Following the recent successes of internet-related issues such as eBay Inc, computer products direct marketer Creative Computers Inc said Thursday that the initial public offering of its uBid Inc subsidiary last week netted roughly $25m after fees for the online auction business. When the offering closed, uBid had sold 1.8 million shares, including 237,000 for over-allotments, at $15 a piece. The proceeds from the offering will be used for advertising and brand development, the build-up of uBid’s infrastructure and for general corporate purposes. The IPO shares represent about 20% of the uBid’s outstanding common stock. Creative will continue to own the remaining 80% of uBid but intends to distribute the shares to holders of Creative common stock in a tax free spin-off within a time period of no sooner than 180 days. uBid operates a web-based auction service for excess computer and consumer electronics merchandise, including close-out and refurbished products to consumers and small to medium-sized businesses. In fiscal 1997, it saw a net loss of $313,000 on revenue of just $9,000. Despite those numbers, the company now has a market capitalization of $294m, based on Thursday’s closing price of $33. The shares have traded as high as $60.50 since their debut.
