Zipcar IPO a smash hit; car sharing company raises $174.3 million
Zipcar's IPO yesterday raised $174.3 million with shares priced at a rather lofty $18 each. The company and its stockholders had initially planned to sell 8.3 million shares in the $14 to $16 range, but stockholders reportedly let loose 1.4 million additional shares, according to an anonymous source who spoke with Reuters.
Zipcar has reported losses every year since its creation, accumulating a total deficit of $65 million in 2010, according to its filing with the U.S. Securities and Exchange Commission. In addition, Zipcar warns that it expects to incur a net loss in 2011.
Goldman Sachs & Co. and JPMorgan were the underwriters for the car sharing company's IPO. Zipcar shares are currently trading at $28 on NASDAQ under the symbol "ZIP."
- Great used cars for less than $10,000
- Owners say these cars aren't very good deals
- New Car Buying Guides
- Cheapest new automobiles in America
- Fastest-depreciating cars in the United States
- Find and compare 2017 Models