Car sharing service Zipcar Inc. expects its initial public offering to be priced between $14 and $16 per share, Reuters reported. The company said in an amended filing with the U.S. Securities and Exchange Commission, that it plans to sell 6.6 million shares, while stockholders will sell an additional 1.6 million shares, Reuters reported. Zipcar has raised more than $60 million from venture capital firms including Benchmark Capital, Greylock Partners, Globespan Capital Partners, Meritech Capital Partners and Pinnacle Ventures.
(Reuters) – Zipcar Inc, a U.S. car-sharing service popular among college students and city dwellers, expects its initial public offering of 8.3 million shares to be priced between $14.00 and $16.00 per share.
The company said it expects net proceeds of $89.2 million and plans to use it to repay debt and for business expansion among other things.
In an amended filing with the U.S. Securities and Exchange Commission, Zipcar said it plans to sell 6.6 million shares, while stockholders will sell an additional 1.6 million shares.
The company had added former eBay CEO Meg Whitman to its board in February.
Goldman Sachs & Co and JPMorgan are underwriting the offering. The shares are expected to trade on Nasdaq under the symbol “ZIP.” (Reporting by Tanya Agrawal in Bangalore; Editing by Maju Samuel)