Zipcar IPO Arrives Hot (ZIP)

Zipcar Inc. (NASDAQ: ZIP) is looking to be a hotter IPO than its pricing.  The offering for the car sharing rental model sold shares at $18.00 per share versus what had been a $14.00 to $16.00 expected range.  The company also sold 9,684,109 shares of its common stock  versus what we had listed recently as 8.3 million shares to be sold. Of the offering, Zipcar sold 6,666,667 shares and certain selling stockholders sold 3,017,442 shares.

A higher price for a higher share count makes a hot IPO. The company now claims to have more than 8,000 of its vehicles and claims some 560,000 subscribers that are located in 14 major metro areas and located in more than 200 college campus university settings.

Goldman Sachs and J.P. Morgan are the joint book-runners; co-managers are listed as Cowen and Company, Needham & Company, and Oppenheimer & Co.  The selling stockholders have granted the underwriters a 30-day overallotment option to buy up to an additional 1,452,617 shares at the initial public offering price.

JON C. OGG