NEW YORK (Bloomberg) -- Zipcar Inc., the car-sharing company that rents vehicles by the hour, opened at $30 and surged as much as 75 percent on its first day of trading on the Nasdaq Stock Market.
The company, based in Cambridge, Mass., raised $174.3 million in an initial public offering on Wednesday, 31 percent more than it sought, after it increased the shares and priced them above the range. The company sold 9.7 million shares at $18 each, according to data compiled by Bloomberg.
Zipcar had offered 8.3 million shares at $14 to $16 apiece, according to a filing with the U.S. Securities and Exchange Commission. Proceeds will be used to reduce debt and expand internationally, the filing showed.
Zipcar shares finished the day at $28.00, a 55.5 percent gain, after reaching $31.50 earlier. The car-rental service operates in 14 metropolitan areas, including London, and has more than 8,000 cars. It plans to expand in the U.S. and international markets including Europe, according to the filing.
The company's net loss in 2010 widened to $14.1 million from $4.67 million a year earlier, the filing showed, while revenue increased 42 percent to $186.1 million in the same period.