Zipcar To Go Public, Seeking $89 Million From IPO
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.
[Source: AutoblogGreen]
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The IPO is expected to happen next week, according to Renaissance Capital, and could raise $125 million at the midpoint of the range. http://www.renaissancecapital.com/Zipcar/ipo-ZIP.html