Orbitz Files for IPO.

21st May 2002

has filed for an IPO, hoping to raise as much as USD125 million despite ongoing investigations from competition authorities.

Orbitz said Goldman Sachs will lead the offering with Credit Suisse First Boston co-lead manager. Legg Mason Wood Walker and Thomas Weisel Partners will be co-managers. Orbitz plans to use the proceeds for working capital and general corporate purposes, and perhaps acquisitions in the future.

The filing cited research from Jupiter Media Metrix showing that online travel bookings accounted for USD24 billion, or 10%, of the USD240 billion overall spent on travel spending in 2001.

In its S.E.C filing, Orbitz said it had a net loss of USD103 million last year after launching its Web site in June. The loss narrowed in the first quarter to USD8.9 million on USD32.2 million in revenues. According to the SEC filing, Orbitz had USD39.1 million in cash and a book value—assets minus liabilities—of USD52 million as of March 31.

The announcement did not include the size or expected date of the sale, which is customarily detailed in subsequent filings





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