Zipcar IPO may bring $75 million
Car-sharing service is betting that name recognition will boost sales of its common stock in an upcoming initial public offering.
Tue, Jun 01, 2010 at 05:02 PM
Zipcar is the most recognized name in the car-sharing industry. With car-sharing locations in major metropolitan areas in the United States and abroad — including college campuses across the nation — millions of Americans know what a Zipcar is. The company is betting on this recognition to help boost sales of its common stock in an upcoming initial public offering (IPO).
Today, Zipcar filed the necessary paperwork with the U.S. Securities and Exchange Commission (SEC) to begin the IPO process. While the number of shares and the estimated price range per share has not been determined, Shawn Langlois with MarketWatch is estimating that the IPO may bring up to $75 million.
The bulk of the money generated from the proposed IPO will be used to pay down debts that Zipcar has on the books. The company plans to use additional funds for general corporate purposes.
It is important to note that the paperwork has been filed with the SEC but the registration statement is not yet in effect. Upon completing the paperwork process, interested parties will be able to obtain a prospectus by calling Goldman, Sachs & Co. at 1-866-471-2526 or J.P. Morgan Securities Inc. at 1-866-803-9204.
This is just the latest exciting news from the company. Zipcar is in the middle of a growth spurt. Recently the company announced the expansion of its Santa Barbara County car-sharing services and officially launched its brand in Scotland with the acquisition of UK-based Streetcar.