Tags: Zipcar | First | Trading | Day | debut | nasdaq

Zipcar Surges in First Trading Day After Raising $174.3 Million

Thursday, 14 Apr 2011 11:39 AM

 

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Zipcar Inc., the car-sharing company that rents vehicles by the hour, opened at $30 and surged as much as 75 percent on its first day of trading on the Nasdaq Stock Market.

The company, based in Cambridge, Massachusetts, raised $174.3 million in an initial public offering yesterday, 31 percent more than it sought, after it increased the shares and priced them above the range.

The company sold 9.7 million shares at $18 each, according to data compiled by Bloomberg. Zipcar had offered 80.3 million shares at $14 to $16 apiece, according to a filing with the U.S. Securities and Exchange Commission. Proceeds will be used to reduce debt and expand internationally, the filing showed.

Zipcar and Arcos Dorados Holdings Inc., the Buenos Aires- based operator of McDonald’s Corp. restaurants in Latin America and the Caribbean, expanded their IPOs yesterday to meet demand. Seven companies are attempting to raise at least $1.89 billion in U.S. initial offerings this week, the busiest for new-stock sales in the country in more than two months.

The Zipcar offering was led by New York-based Goldman Sachs Group Inc. and JPMorgan Chase & Co. The shares traded at $28.97 at 11:12 a.m. after reaching $31.50 earlier.

The car-rental service operates in 14 metropolitan areas, including London, and has more than 8,000 cars. It plans to expand in the U.S. and international markets including Europe, according to the filing. The company’s net loss in 2010 widened to $14.1 million from $4.67 million a year earlier, the filing showed, while revenue increased 42 percent to $186.1 million in the same period.

Arcos Demand

Arcos Dorados raised $1.25 billion, 33 percent more than it sought, selling 73.5 million shares at $17 each after offering 62.5 million for $13 to $15 apiece, according to a company statement and a share-sale filing. The deal received more than 10 times more orders than the amount of stock being offered, a person with knowledge of the situation said.

Arcos, which operates 1,755 McDonald’s locations, will use $150 million of the share sale’s proceeds to open new outlets and remodel existing ones, according to its prospectus.

The sale was led by Bank of America Corp., based in Charlotte, North Carolina; JPMorgan, Morgan Stanley and Citigroup Inc. of New York; and Sao Paulo-based Itau Unibanco Holding SA. The shares will list on the New York Stock Exchange under the symbol ARCO.

Reduced Terms

Box Ships Inc., the Athens-based company that plans to buy container ships, reduced its U.S. IPO by 22 percent, selling 11 million shares for $12 apiece after offering 10 million shares for as much as $17 each, according to its SEC filing and data compiled by Bloomberg.

UBS AG of Zurich and Morgan Stanley led the offering, and the shares will trade on the NYSE under the symbol TEU.

TMS International Corp., the provider of outsourcing services to steelmakers, raised $145.6 million in its offering. The Glassport, Pennsylvania-based company received 31 percent less than it sought, data compiled by Bloomberg show, pricing 11.2 million shares at $13 each after marketing 12.5 million for $15 to $17.

Bank of America, Zurich-based Credit Suisse Group AG and JPMorgan led the offering by TMS International. The shares will trade on the NYSE under the symbol TMS.

© Copyright 2014 Bloomberg News. All rights reserved.

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