Investing

Orbitz Prices IPO (OWW, BX, TZOO)

Online travel hub operator Orbitz did price its IPO of 34 million shares at a price of $15.00 per share.  Orbitz will trade under the “OWW” ticker on NYSE.  Unfortunately the original range was indicated as $16.00 to $18.00, so this is going to be deemed as a poor IPO pricing.

Morgan Stanley & Co. Incorporated, GoldmanSachs & Co., Lehman Brothers Inc. and J.P. Morgan Securities Inc.are the global coordinators with Credit Suisse and UBS Investment Bankacting as joint lead managers. Thomas Weisel Partners LLC, PacificCrest Securities, Piper Jaffray, and Stifel Nicolaus are co-managers ofthe offering.

Blackstone (NYSE:BX) is receiving basically all of the IPO proceeds as they are regurgitating the company in a re-IPO.  Here is the backgrounder on the company explaining the history since this was public before, then was acquired by the old Cendant, and then became part of a larger sale to Blackstone just last year.  The weakness in Travelzoo (NASDAQ:TZOO) is also partially to blame for a weak IPO here in the same space, as well as the relation to Blackstone and Wall Street’s poor reception of the private equity beast.

Jon C. Ogg
July 20, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

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