Photo: Andrew Currie via Flickr
Zipcar shares are up nearly 60% a few hours after the company started selling them.Zipcar priced the IPO at $18 per share, which is higher than the $14 to $16 most were expecting. Now, the stock is trading around $28 — that’s up 60% in a day.
Zipcar has a fleet of inexpensive rental cars in 14 metropolitan areas and 230 college campuses.
Members sign up for the service, then rent cars by the hour or day, usually for specific errands. The company has signed up about 560,000 members, and had revenues of $186 million last year — up 43% from 2009 — but it did not turn an operating profit from 2008 through 2010, although it’s had positive cash flow for the last two years.
Big IPOs for companies with no profits? That sounds suspiciously like 1999.