Ravenswood Raises $11 Million Through Public Offering

Dana Nigro
Posted: April 10, 1999

Ravenswood, the Sonoma County, Calif., winery best known for its Zinfandel, has raised about $11 million through its initial public stock offering, which closed Thursday. This was the first IPO to be held entirely through a new online auction system.

Ravenswood sold 1 million shares -- representing a 22 percent stake in the winery -- at $10.50 per share. The money will be used to expand the winery's facilities and to increase its production. The stock now trades on the NASDAQ market under the symbol RVWD; on Friday, the first day of open trading, it closed slightly up, at a price of $10.88.

San Francisco-based W.R. Hambrecht & Co., a boutique investment firm, underwrote Ravenswood's offering. Through the company's new OpenIPO system, the price and allocation of the winery's shares were determined through an online auction at www.openipo.com. The system is intended to give the same access to individuals as it does to institutional investors; shares go to the highest bidder instead of to preferred investors.

Ravenswood was founded in 1976 by Joel Peterson, who remains the winemaker. In 1981, he was joined by CEO Reed Foster, who provided financial backing to expand operations. In addition to its well-known Zinfandel, Ravenswood makes Merlot, Cabernet Sauvignon and Chardonnay.

For more on Ravenswood's IPO:

February 5, 1999
Sonoma's Ravenswood Will Offer Public Shares Over Internet

To read about other wineries that have gone public:

September 15, 1998
Golden State Vintners Goes Public

October 30, 1997
Beringer Stock Value Soars on First Day of Trading

October 29, 1997
Beringer's IPO Delayed After Stock Market Plunges

August 29, 1997
Beringer Has Filed to Go Public