🎁 'Tis the season to support public service journalism Donate Now

Hertz IPO

Janet Babin Jul 17, 2006
HTML EMBED:
COPY

Hertz IPO

Janet Babin Jul 17, 2006
HTML EMBED:
COPY

TEXT OF STORY

CHERYL GLASER: After almost 90 years in business Hertz has a better idea. The rental car company plans to go public this week as Janet Babin reports.


JANET BABIN: Hertz had intentions of going public last summer when it was owned by Ford, but a group of private equity firms ended up acquiring the company last December.

Since the buyout, revenue is up 9 percent over last year. But credit analyst Betsy Snyder with Standard and Poor’s doesn’t think Hertz’s new owners had much to do with it. She says the company has always been profitable:

BETSY SNYDER: They generate strong cash flow…and they’re profitable – what more could a buyer want, right?

Hertz is likely banking on that sentiment.

But Henry Harteveldt with Forrester Research says the IPO could tank if gas prices keep rising:

HENRY HARTEVELDT: People either may not fly which is where they’re most likely to rent cars, or they may curtain the number of days they stay away or they just don’t rent the car at all.

The company didn’t give a price range for the shares or say how many it would offer.

I’m Janet Babin for Marketplace.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.