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WIKI ANALYSIS
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
Zipcar (NASDAQ:ZIP) is the largest car sharing company in the world. Members of Zipcar are able to borrow cars for short periods of time in 14 major metropolitan areas and across over 230 college campuses in the US. The service is used primarily by individuals who either do not want to purchase a car. This gives them the flexibility to travel when needed without the overhead of owning a car.[1]
When reserving a car, individuals pay either by hour or reserve an entire day. They pay only a fixed hourly or daily rate, and do not need to pay for gas or maintenance to the car. Zipcar believes that demand for car sharing will rise with the continued urbanization of the world population, the focus on sustainability, and the trend towards pay-per-use consumption. In addition, car sharing is more affordable for individuals living in urban areas or infrequently require a car.[2]
The company's initial public offering of stock on the NASDAQ occurred on April 13, 2011. The company offered 9.7M shares each for $18. This was above the initial price range of $14-$16. The original deal was worth $145.5M. The price increased brought the total deal size to $174.6M. The lead underwriters of the deal were Goldman and J P Morgan Chase (JPM).[3]
For the fiscal year 2010, Zipcar reported a total revenue of $186M, a 42% increase over the previous year. The company reported a net loss of $14M for 2010 and had accumulated approximately $95M in debt as of December 2010. [4]
References
- ↑ ZIP S-1/A 2011 PROSPECTUS SUMMARY "Overview" pg 1
- ↑ ZIP S-1/A 2011 PROSPECTUS SUMMARY "Market Opportunity" pg 3
- ↑ Renaissance Capital - IPO Home "Zipcar prices upsized IPO at $18, above the range" 13 April 2011
- ↑ ZIP S-1/A 2011 PROSPECTUS SUMMARY "SUMMARY CONSOLIDATED FINANCIAL DATA" pg 9-10
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