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During their first day of public trading on the Nasdaq Stock Exchange in New York, shares of Zipcar Inc., the car sharing organization, jumped by as much as 67 percent, opening at $30, considerably higher than the initial offering price.
The company, created in 2003, managed to raise $174.3 million to enact an Initial Public Offering of stock on April 13; 31 percent greater that it initially sought on the market. Selling 9.7 million shares at $18 a piece (up from original plans for 8.3 million at $14-$16), the results of the first day’s trading (up to $30 a share and closing at $28),were strong encouragement, especially since in 2010, Zipcar posted a net loss of some $14.1 million (up from $4.67 million a year earlier).
Nevertheless, revenue increased in the same period by some 42 percent, to $186.1 million and now, with hot demand for its publicly traded stock, the company hopes to reduce debt and continue plans to expand internationally.
Currently, Zipcar boasts a network of 230 campuses and operates in 14 different cities in the US, Canada and the United Kingdom.
[Source: Automotive News]