Jan 21 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.