Loudcloud rises 3% in public offering

Cyberbiz Brief

By MARC GRASER

Loudcloud, the Web site builder co-founded by Netscape founder Marc Andreessen, rose a scant 3% in its initial public offering Friday. Unfavorable market conditions are partly to blame as well as the company's loss of $180 million since September 1999. Shares in the company climbed 15¢ to $6.15 on a volume of 15 million shares, raising $150 million. Company's market value is thus about $450 million, less than half the $1.1 billion it planned for in its earlier filings. Initially, the company planned to sell 10 million shares, or a 9.6% stake of the company, at a range of $10 to $12. Thursday, the company changed its plans, offering 25 million shares at $6 each, or 34% of Loudcloud. Michael Ovitz is a board member and investor in the company.