Blue Nile Offers IPO Shares at $20.50 A Pop

Online jewelry retailer Blue Nile said it is selling 3.74 million shares at $20.50 a piece in its coming initial public offering. The e-tailer is offering two million shares, while selling stockholders are offering the other 1.74 million shares.

Blue Nile will not receive any proceeds from the sale of shares by the selling stockholders in the offering.

Seattle based Blue Nile said last month it expected the IPO price to be between $17.50 and $19.50 per share.

The company, which offers more than 30,000 certified diamonds and more than 1,000 styles of jewelry, such as rings, wedding bands, earrings, bracelets and watches on their web site, originally said it hoped to raise $75 million in the share offering.

The proceeds will be used for general corporate purposes, including working capital and capital expenditures, and possible investments in securities, the company said. It said it has no intention of acquiring other businesses or technologies.

According to documents filed with the SEC, Blue Nile has posted growth in net sales each year since its launch in 1999. The document shows that net sales in 2003 reached $128.9 million from $44.2 million in 2000.

Merrill Lynch, Bear, Stearns & Co. and Thomas Weisel Partners are underwriting the deal.