* Sells 9.68 mln shares for $18 vs $14-$16 price range
* Shareholders sell 1.4 mln more shares than expected
* To trade on Nasdaq Thursday under symbol "ZIP"
* Goldman Sachs and JPMorgan led underwriters
(Adds financial details, VC investors, Breakingviews link)
By Alina Selyukh
NEW YORK, April 13 Zipcar Inc, a U.S.
car-sharing service popular among college students and city
residents, priced shares above the proposed range and its
stockholders sold more shares than expected in the IPO on
Wednesday, a market source said.
The IPO raised $174.3 million with shares pricing at $18
each. The company and its stockholders had planned to sell 8.3
million shares for $14 to $16 each. The stockholders sold some
1.4 million shares more than expected, according to the source,
who spoke on condition of anonymity because the details have
not been officially released.
Zipcar, founded nearly a decade ago, is a leader in so
called car-sharing, a service that allows customers to rent
cars at an hourly or daily rate and often park in convenient
reserved spots. Customers also pay annual membership fees.
The service is popular in urban areas and around
universities, where fewer people own cars and parking is scarce
The model has caught on so much that larger car rental
companies such as Hertz Global Holdings Inc (HTZ.N), Enterprise
Holdings Inc [EPRIH.UL] and U-Haul, owned by Amerco (UHAL.O),
have started rival car-sharing services.
BREAKINGVIEWS [ID:nN04139827] and [ID:nN05138536]
Among Zipcar's venture capital investors are Steve Case's
Revolution Living, which will own more than 17 percent of the
company after the IPO, Benchmark Capital, Greylock Partners and
Smedvig Capital, which planned to sell shares in the IPO.
The company has incurred losses every year since its
creation, mounting to an accumulated deficit of $65 million in
2010, according to a filing with U.S. Securities and Exchange
Zipcar warned investors of a net loss expected in 2011.
In the filing, Zipcar explained that, as with any other car
rental service, many of its expenses are upfront fixed costs of
building up the fleet of cars before people actually reserve
and pay for them.
Zipcar's revenue, however, has been climbing. It grew 42
percent to $186 million in 2010 after adding 24 percent the
Zipcars are in 14 big cities and 230 college campuses
around the United States, Canada and the United Kingdom. To
expand further in Europe, a year ago, Zipcar bought a British
peer, Streetcar Ltd.
In February, the company also added former eBay Inc
(EBAY.O) CEO Meg Whitman to its board.
Zipcar shares are expected to begin trading on Nasdaq under
the symbol "ZIP" ZIP.O on Thursday.
Goldman Sachs and JPMorgan led underwriters on the IPO.
(Reporting by Alina Selyukh; editing by Andre Grenon, Gary