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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]
On of the world’s top car sharing companies, Zipcar, is planning to make an initial public offering. It recently amended its Securities and Exchange Commission filing, and is now seeking about $89.2 million from sale of 8.3 million shares at around $14-16 each.
The company has been in business since 1999 with regional service for its by-the-hour hybrid rentals. Zipcar has been making money, but also plagued by expenses keeping it from being an outright success story.
Nevertheless, it is moving forward to sell 6.6 million shares with stockholders selling an additional 1.6 million. The deal is being underwritten by Goldman Sachs and Co. and JPMorgan.
The company is expected to be listed on the NASDAQ exchange under “ZIP.” This is essentially what the company netted after losses in 2009, when the green company reported being $4.7 million in the red.
It has garnered 400,000 paying customers in the decade since opening. Some of its IPO will go toward repayment of debt.