Hertz Files for IPO

Hertz Corp. has filed for an initial public offering in an effort to raise cash and improve the debt rating for Ford Motor Co., which owns Hertz.

The June 13 Securities and Exchange Commission filing indicated that Hertz planned to offer about $100 million in Class A common stock on the New York Stock Exchange under the symbol "HTZ."

According to a news report in the Wall Street Journal, analysts value Hertz at $4 billion to $6 billion.

The SEC filing suggested that Ford plans to sell off its remaining interest in Hertz following the IPO.

"Ford has indicated to us that it expects, subject to market conditions, to completely divest its ownership in us," the filing stated.

In 2004, Hertz's worldwide car rental operations generated $5.5 billion in revenue and $437.6 million in income before income taxes and minority interest, the filing stated. About 74% of the company's worldwide car rental revenues came from on-airport locations in 2004.

In the U.S. last year, Hertz held about 30% market share, based on revenues, at the 180 largest airports where the company has operations, according to the SEC filing. That's more than nine percentage points higher than the closest competitor.

Also last year, Hertz's worldwide equipment rental operations generated $1.2 billion in revenue.

Hertz has company-operated car rental locations in the U.S. and all the major markets in Europe, as well as in Canada, Australia, New Zealand, Brazil, Puerto Rico and the U.S. Virgin Islands.

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

Five Business Model Trends for 2017

As new forms of mobility take flight, the borders with traditional car rental are starting to erode.

Are Commercial Drone Deliveries Eminent in the U.S.?

Amazon just delivered its first package by drone in England. Will U.S. delivery fleets be able to take advantage soon?

Autonomous Vehicles and the Changing Role of the Fleet Manager

With fewer drivers and substantially longer fleet lifecycles, fleet managers will pivot to new job functions.

Job Finder: Access Top Talent. Fill Key Positions.