US travel site sets IPO price

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US travel site sets IPO price

Orbitz, the Chicago-based travel website owned by several large US airlines, expects to raise about $82.2m in an initial public offering.

The company plans will sell four million shares at between $22 and $24 apiece,and stockholders will sell an additional seven million shares at the same price. No date has been set for the IPO.

Orbitz has applied for quotation of its stock on the Nasdaq stock market. Proceeds from the offering would be used for working capital and general corporate purposes. Orbitz will not receive any of the proceeds from the sale of the shares by its stockholders.

Orbitz was started in 2000 with money from Continental Airlines, Delta Air Lines, United Airlines, Northwest Airlines and American Airlines. The travel site went online in June 2001 and now claims to be the third largest based on travel bookings. Its chief rivals are Expedia and Travelocity.com.

Since its launch, more than 22 million transactions have been completed through the Orbitz site. In the quarter ending 30 September, Orbitz had net income of $3.9m on revenue of $64.4m.

Joris Evers writes for IDG News Service


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