Web site design and internet services firm USWeb Corp got its initial public offering of 5 million shares of common stock off on Friday at $7.50 per share, raising $37.5m. Of that USWeb will pocket $34.9m. The price came as a disappointment to Santa Clara, California-based USWeb, as the company had originally hoped to sell the shares in the $9-$11 range. The shares sold represent 16.4 percent of the company, valuing it at $228.6m. Lead underwriter for the offering was Hambrecht & Quist, with co- managers Donaldson, Lufkin & Jenrette, Wessels, Arnold & Henderson and First Albany Corp. The company granted the underwriters the option to purchase up to 750,000 additional shares solely to cover over-allotments. All of the shares are being sold by USWeb, which has already announced that it expects to close a separate private placement of $10m of 1.67 million shares of common stock to Intel Corp at 80% of the initial public offering price. USWeb plans to use the net proceeds of the IPO for general corporate purposes, including working capital. USWeb shares have begun trading on the Nasdaq National Market under the symbol USWB. They closed the day Friday on the maiden session high of $10.
