Travelocity owner Sabre files for IPO of up to $100 mln-Reuters

(Reuters) – Sabre Corp, the owner of online travel agency Travelocity, filed with U.S. regulators to raise up to $100 million in an initial public offering of its common stock as it attempts to become a publicly traded company again.

The company, which provides technology solutions to the global travel and tourism industry, was spun off from American Airlines parent AMR Corp in an IPO in 2000.

Sabre, which operates through three business segments, Travel Network, Airline and Hospitality Solutions, and Travelocity, was taken private by TPG Funds and Silver Lake Funds in 2007.

Sabre posted a net loss of $127.2 million on a revenue of $2.35 billion for the nine months ending Sept. 30, 2013.

The Texas-based company is the largest global distribution systems provider in North America for air bookings.

The IPO comes at a time when the travel and tourism industry is growing at a rapid rate. The industry added $6.6 trillion to the global GDP in 2012, according to a research report by the World Travel & Tourism Council.

Air travel and hotel spending is expected to grow at 5 percent annually from 2013 to 2017 while technology spending by air transportation and hospitality sectors is expected to grow to $70 billion in 2017 from $60 billion in 2013.

IPO activity surged last year as low interest rates and a surging stock market enticed investors and encouraged private equity owners to seek an exit.

Companies raised $159.7 billion from IPOs globally, up 37 percent from 2012, and bankers expect 2014 to carry on where 2013 left off.
Morgan Stanley, Goldman Sachs, BofA Merrill Lynch and Deutsche Bank Securities are underwriting the offering, Sabre said in a filing with the U.S. Securities and Exchange Commission on Tuesday.

The filing did not reveal how many shares Sabre, whose “Roaming Gnome” mascot for Travelocity is well recognized, planned to sell or their expected price.

The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.