Online jeweler Bidz.com puts brakes on IPO.

BIDZ.com Inc., a successful Culver City-based online jewelry retailer, has indefinitely delayed an initial public offering.

The company, which operates its Web site as a live auction, buys closeout merchandise at low prices. On an average day Bidz.com sells 7,000 items with individual orders weighing in at $112. However, the timing for its IPO was off.

"The delay has been announced for the protection of the company and the investors," Anna Protsenko, a member of Bidz' investor relations team, told the Business Journal in an e-mail. "The stock market is in a bad place and the majority of the companies that have filed for an IPO lately have not come close to hitting their target price."

Before Bidz.com was to go public, the company cut its initial public offering to 3 million shares from 6.2 million shares. Also, the estimated price was lowered to $7 to $8 per share from $8 to $10 per share.

Based on the per share price range, Dow Jones/Associated Press estimated that Bidz.com had expected to raise $27.6 million from the initial public offering, down from $71.2 million the company could have notched in a June offering.

Protsenko wrote that the "response level was extremely low" to the initial public offering. She added that the company "may have to repeat the process," although she didn't give any indication about the time table.

In a regulatory filing, the company said it planned to use the raised funds to expand its customer base, enhance sourcing relationships, increase product offerings and extend its reach into international markets.

In fiscal year 2005, Bidz.com's net revenues totaled $90.6 million, making it the second largest online jewelry retailer. In 2004, the company's revenues were $65.3 million.

Cathay Buys New Asia Bancorp

Cathay General Bancorp said on July 6 that it had agreed to purchase New Asia Bancorp Inc., owner of New Asia Bank, for $23.5 million in cash and stock, Cathay said in a release.

Los Angeles-based Cathay owns bank branches in California, Massachusetts, New York, Texas and Washington and with this purchase extends into Chicago, where Chicago-based New Asia Bancorp owns three branches.

New Asia Bancorp, founded in 1987, has assets of about $140 million, loans of $110 million, deposits of $118 million, and total shareholders equity of approximately $11.9 million.

According to Cathay, majority holders of New Asia Bancorp agreed to support the transactions.

IndyMac Drops Spinoff IPO

IndyMac Bancorp Inc., one of the largest mortgage lenders in the country, said July 5 that it has dropped plans for an initial public offering of its Financial Freedom Senior Funding unit. The Pasadena-based company added that it will buy out the stake held by the unit's chairman and chief executive, Jim Mahoney, for $40 million.

The price tag for the 6.25 percent stake is half of what IndyMac paid--$80 million--to buy nearly 94 percent of Financial Freedom from Lehman Brothers Holdings Inc. in 2004. Mahoney will step down as chief executive of that division at the end of the year and will be replaced by Michelle Minier. IndyMac's executive vice president of central mortgage operations.

The executives will share chief executive duties until then. Mahoney will remain as chairman, according to IndyMac.

Architect Firms Merge

Newport Beach-based architecture, construction and construction management firm gkkworks announced on July 6 that it has signed a merger agreement with Glendale-based architecture firm Leidenfrost/Horowitz & Associates Inc.

Gkkworks will retain its current name and LHA will be referred to as LHA, a division of gkkworks, and remain in Glendale. Gkkworks plans to relocate to Irvine later this year.

The combined staff of 240 employees in 10 offices, will service local, national and international clients with projected total billings of over $50 million annually.

For gkkworks, the merger creates the opportunity to diversify into the commercial retail market and expand its work within the K-12 and higher education sectors. For LHA, the merger presents the opportunity to integrate into gkkworks' blend of design and construction services.

"With added employees, architects and offices, we will be able to reach broader and more diversified markets," said gkkworks Chief Executive Praful Kulkarni in a statement.