Autoweb soars on first trading day

Autoweb.com, an online car seller, more than doubled on its first day of trading following an initial public stock sale. The Santa Clara, California-based company surged 185.71 percent to close at 40. Autoweb.com allows consumers to research and buy new and used cars and related products such as insurance over the Internet. Some 3,900 dealers pay to list their cars on Autoweb.com, whose revenues nearly quadrupled last year. "There is huge potential" for selling cars over the Web, said Cheryl Bostater, an analyst with GSG Securities in Denver. Still, sites such as Autoweb.com face competition "from not only the consolidators but also the manufacturers," she said. One consolidator of automobile dealerships, Republic Industries, had $100 million in sales on its recently established Web site in the fourth quarter, Bostater said. Another rival online automotive service, Irvine, California-based Autobytel.com, today raised its IPO share price to 20 to 22 each, up from 16 to 18, after Autoweb_s early success.Yesterday Autoweb.com and existing shareholders sold 5 million shares at 14 each. That was 2 more than the top price of 12 set by the main underwriter, Credit Suisse First Boston. The sale represented about 21 percent of the outstanding shares. Existing shareholders sold 100,000 shares. Autoweb.com, which incorporated in October 1995, lost $11.5 million on revenue of $13 million in 1998. In 1997, it lost $2.9 million on revenue of $3.5 million.