Zipcar, the car sharing service backed by Benchmark Capital and Greylock Partners, set the price range for its expected IPO. Zipcar is expected to price on Wednesday April 13, two sources say. It is expected the company will go public the next day.
Cambridge, Mass.-based Zipcar plans to sell 8.3 million shares at $14 to $16 each, according to a March 30 regulatory filing. Zipcar is offering about 6.7 million shares while selling stockholders are offering another 1.66 million shares. Zipcar plans to trade under the ticker symbol “ZIP” on the Nasdaq. The underwriters have the option to buy another 1.25 million shares.
Goldman Sachs and JP Morgan are joint bookrunners. Cowen and Co., Needham & Co. and Oppenheimer & Co. are also underwriters on the deal (Goldman owns stock in a Zipcar affiliate, Zipcar Vehicle Financing, and may hold more than 5%, which may make them conflicted. So JP Morgan is acting as the “qualified independent underwriter” for the IPO, the filing said.)
Zipcar raised $59.3 million in funding from Benchmark Capital, Globespan Capital Partners, Greylock Partners, Meritech Capital Partners and Pinnacle Ventures, according to the National Venture Capital Association. However, it doesn’t appear that the larger investors, those owning more than five percent are selling stock.
Revolution Living, the fund from Steve Case, owns about 6.9 million shares, or 21.45%. Revolution isn’t selling shares although it stake will fall to 17.74% after the IPO. If the greenshoe is exercised, Revolution’s holding will drop to 17.19%, according to a regulatory filing. Case’s stake dates back to 2007 when Zipcar acquired Flexcar, which was funded by Revolution.
Benchmark Capital owns 3.8 million shares or 11.9% of Zipcar. Benchmark isn’t selling shares but its stake will drop to 9.85% after the IPO and to 9.54% if the greenshoe is exercised. Greylock has 1.7 million shares or 6.71%. They’re also not selling. After the IPO, Greylock’s holding will fall to 5.55% and to 5.38% if the greenshoe is exercised. Meg Whitman, the former head of eBay, is not selling stock. Whitman owns 70,878 shares of Zipcar and is holding on to them.
But Smedvig Capital, of Norway, is selling. Smedvig owns about 1.7 million shares, or 5.24%. It is offering 900,890 shares and its stake will fall to about two percent after the IPO and 1.94% if the greenshoe is exercised.
Globespan is no longer invested in Zipcar and lists the company under past investments at its Web site.