Zipcar Closer to IPO (ZIP)

Zipcar Inc. is closer to becoming a public company.  The company’s amended S-1 filing with the SEC was filed on Friday.  While we still have no pricing data, updated information has been provided about its financial statements and its underwriting group.  The company plans to list under the ticker “ZIP” on NASDAQ.

Zipcar operates in 14 major metropolitan areas and on more than 225 college campuses in the United States, Canada and the United Kingdom.  It specializes in short-term rentals.

The joint book-runners are listed as Goldman Sachs & Co. and J.P. Morgan; co-managers are listed as Cowen and Co., Needham & Co., and Oppenheimer & Co.

Revenue has grown from $13.7 million in 2005 to $131.2 million in 2009; for the first nine-months of 2010 it has seen $134.0 million in revenue (September 30 end).  The net loss was $4.7 million in 2009 and $13.1 million for the nine months ended September 30, 2010; its incurred an adjusted EBITDA loss of $1.6 million in 2009 but generated adjusted EBITDA of $0.6 million for the nine months ended September 30, 2010.

The company claims that each new Zipcar ordered takes 15 to 20 vehicles off the road, and its fleet now consists of more than 8,000 vehicles.

The company’s growth into the United Kingdom was by acquiring Streetcar Limited in April 2010, and this is expected to be its growth model to get into Europe.

Owners and backers include Steve Case’s Revolution Living fund, Benchmark Capital Partners, Greylock Partners; and another owner/backer is Smedvig Capital in Norway.  As of December 1, 2010, there were 63,019,765 shares of common stock outstanding and held of record by 234 stockholders, assuming the conversion of all outstanding shares of preferred stock.

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JON C. OGG