20.11.2006

Hertz IPO disappoints

Hertz Global Holdings the company that was subject to a private equity buy out from Ford Motor last year for $5.6 billion plus debt became a public company last week in one of the largest Initial Public Offerings of the year.

The company, which is the third or fourth largest equipment rental company in the USA sold 88 million shares for $15 a share, well below the hoped for $16 to $18 range.

The flotation values the company at around $4.8 billion.
The company says that it intends to use the IPO proceeds to repay debt and for general corporate purposes.