Zipcar IPO Beats Expectations

Zipcar, the world's largest car-sharing company, raised $174.3 million in its long-awaited initial public offering (IPO) on April 14. Under the symbol ZIP, shares opened at $18 and rose to $28 by the close of the first day of trading, about 30 percent higher than initially sought.

In an SEC filing in March, Zipcar priced its IPO at $14 to $16, which was expected to net the company $89 million to $95 million on sales of 8.3 million shares on the Nasdaq.

Zipcar reported $186.1 million in worldwide revenues in 2010 on a fleet of about 8,000 vehicles, though the company has yet to turn a profit. "The success of the Zipcar IPO is certainly an indication that car sharing is attracting interest outside of the traditional transportation sectors, which makes sense given the disruptive nature of the business model," said Dave Brook, publisher of a carsharing industry blog and consultant with Team Red US. "Now that they're public they have their work cut out to grow the business even more - and start making a profit."

At the end of trading on Tuesday, April 19, Zipcar closed at $29.27.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Another Ridiculous “Used Fleet Vehicle” Scandal

While media reports concentrate on the sting and the “outrage,” where’s the empirical evidence that fleet vehicles are less mechanically sound than vehicles sold from private owners?

Will IoT Herald a New Era in Fleet Efficiency?

With the ELD rule finally in effect, small fleet operators need to hunt for new efficiencies. In transportation logistics, Internet of Things (IoT) systems could have similar lasting impacts as telematics.

Will Cars Become Transportation Appliances?

The cars are still the stars, but this year’s L.A. Auto Show revealed an auto industry at a crossroads.

Job Finder: Access Top Talent. Fill Key Positions.

>