Zipcar Revs Up For Initial Public Offering

Zipcar has never been profitable since it was founded in 2000 and it expects to lose money again in 2011. Photo Mariordo Mario Roberto Duran Ortiz
Zipcar has never been profitable since it was founded in 2000 and it expects to lose money again in 2011. Photo Mariordo Mario Roberto Duran Ortiz

by Christina Rexrode

NEW YORK (AP) - Zipcar Inc., the car-sharing company that rents rides for as little as an hour, is expected to get a warm reception from Wall Street for its planned initial public offering this week.

Its supporters think skyrocketing gas prices will make car sharing more popular.

Still, Zipcar has never been profitable since it was founded in 2000 and it expects to lose money again in 2011.

The IPO's value would total about $125 million at the midpoint of its expected price range. Of that, the company expects proceeds of about $89 million, $46 million of which it will use to pay down debt.

The company is expected to start trading on the Nasdaq Stock Market under the ticker ZIP.

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