Despite its struggles – which you can read about here, here and here – Zipcar, one of the world's leading car sharing companies, is moving forward with plans to go public. Zipcar has amended its filing with the Securities and Exchange Commission and is now seeking an estimated $89.2 million (previously, it was $75 million). The car sharing firm is looking to let 8.3 million shares fly at a price that's expected to come in between $14 and $16.
In its amended filing, Zipcar says it will sell 6.6 million shares, with stockholders offering up 1.6 million shares. Goldman Sachs & Co. and JPMorgan are underwriting the IPO and Zipcar's shares will likely trade on NASDAQ under the symbol "ZIP." Clever.
Will the IPO be a success? Nobody knows. But Zipcar's past is fraught with problems, including financial issues that still loom over the car sharing company. Back in 1999, Zipcar burst onto the scene and has secured well over 400,000 customers since then, but the company has struggled to stay out of the red. In 2009, Zipcar reported losses of $4.7 million and with some of the net proceeds from its IPO going towards repayment of debt, investing in Zipcar seems dicey. Tip of the cap to Berto!
[Source: Reuters]
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