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Despite its struggles – which you can read about here, here and hereZipcar, one of the world's leading car sharing companies, has officially gone public.

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."

[Source: Reuters]


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    • 1 Second Ago
  • 5 Comments
      harlanx6
      • 7 Months Ago
      Does this have a chance to be profitable (after they burn through the fools money?)
      • 7 Months Ago
      A fool and his money are soon parted.

      Here's your chance, granolas. Put up your millions.
        Noz
        • 7 Months Ago
        I'm sure you'd rather put that money into military and weaponry right?
      • 7 Months Ago
      Can someone explain to me how these men were able to raise money in the first place (I suppose the $65 lost millions had to come from somewhere?). Or did they invest their own (inheritance) money initially?
        • 7 Months Ago
        They probably started the way many businesses do - they created a business plan, and pitched it to investors.

        "Zipcar is bolstered by $45 million in angel and venture capital. Most of it comes from Benchmark Capital, Global Capital Partners, and Greylock Partners, plus a personal investment by Staples (SPLS) founder Thomas G. Stemberg. The investors are patient."

        http://www.businessweek.com/magazine/content/08_36/b4098062937966.htm?campaign_id=rss_daily

        Seems to me that the investors' patience has paid off quite well.