Zipcar Inc., the hourly car rental company, said that it will seek to raise as much as $75 million by way of an IPO. The company, which has shown red ink every year since its inception in 2000, plans to use the money to reduce debt and expand the size of its fleet.
Many planned IPO”s have been withdrawn since the European debt crisis presented itself, although Tesla Motors Inc. seeks to raise $100 million, and GM has said that we may see public sale of shares this year.
Despite revenue of $33 million in the first quarter – a 29% increase over last year – the company is showing a greater net loss. Currently operating in 13 metro areas, the company is seriously looking into expansion.
– By: Stephen Calogera
Source: Automotive News (Subscription Required)