Zipcar, which operates the leading car sharing services network in North America and the UK, announced terms for its IPO on Wednesday. The Cambridge, MA-based company plans to raise $125 million by offering 8.3 million shares at a price range of $14 to $16. At the mid-point of the proposed range, Zipcar will command a market value of $579 million.
Zipcar, which was founded in 2000, provides over 560,000 members with self-service vehicles available through the company's reservation system. It operates in 14 major metropolitan areas and on more than 230 college campuses in the US, Canada and the UK. Zipcar booked $4.2 million in adjusted EBITDA on $186 million in sales last year, up from -$1.6 million on $131 million in 2009. Existing shareholders include Revolution Living (18% post-IPO stake), Benchmark Capital Partners (10%), Greylock Partners (6%) and Smedvig Capital (2%).
The company plans to list on the NASDAQ under the symbol ZIP with Goldman, Sachs & Co. and J.P. Morgan serving as lead underwriters on the deal.
