$316 million raised in IPO by Orbitz

Online travel agency, backed by 5 airlines, gets $26 a share

December 17, 2003|By BLOOMBERG NEWS

Orbitz Inc., an online travel agency backed by the five biggest U.S. airlines, raised $316.7 million yesterday in an initial public offering valuing the company at about $1 billion.

Orbitz, based in Chicago, sold 12.18 million shares at $26 each after indicating a range of $22 to $24 in a Securities and Exchange Commission filing. The airlines sold 8.18 million shares, and Orbitz sold 4 million shares. The company will use the proceeds to finance its business.

AMR Corp.'s American Airlines Inc. and UAL Corp.'s United Air Lines Inc. plan to cut their stakes in Orbitz to 18.4 percent each. Delta Air Lines Inc.'s holding will fall to 12.9 percent, Northwest Airlines' will drop to 10.9 percent, and Continental Airlines Inc.'s will slide to 9.7 percent.

The airlines and company officials will hold about 31 million shares after the IPO, according to the filing.

Orbitz's Web site allows consumers to search more than 2 billion fares and flights, and to book hotels and cars.

Orbitz had net income of $3.9 million on revenue of $64.4 million in the third quarter this year, compared with a net loss of $5.3 million on revenue of $49.3 million in the quarter last year. In the nine months that ended Sept. 30, the company lost $1.4 million on sales of $172.1 million.

Goldman Sachs Group Inc. managed the share sale, sharing $19.8 million in fees with Credit Suisse First Boston, Legg Mason Wood Walker and Thomas Weisel Partners LLC.

Orbitz will be listed on the Nasdaq stock market under the ticker sign ORBZ.

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