Car-sharing service Zipcar, Inc. has filed for a $75 million initial public offering (IPO).
Zipcar operates in urban areas and college campuses throughout the
United States, Canada and the United Kingdom. Zipcar offers more than 30
makes and models of self-service vehicles by the hour or day to
residents and businesses looking for an alternative to the high costs
and hassles of owning a car.
While the company has the most name-recognition among car-sharing companies, it has yet to turn a profit. In 2009, the company reorted $131 million in revenue and $4.6 million in losses. In 1Q10, revenue was $33.2 million while losses jumped to $5.3 million.
Zipcar said it expects to use the net proceeds from the offering to pay down certain indebtedness, and the remaining net proceeds, if any, for general corporate purposes.
The book-running managers of the proposed offering will be Goldman,
Sachs & Co. and J.P. Morgan.
Read additional coverage at the link below.
