Car rental giant Hertz Global’s stock fell 10% in its first day of trading on the NASDAQ exchange after raising $1.3 billion U.S. in an initial public offering (IPO).
Shares of the Florida-based car-rental company opened at $26.25 U.S. after pricing 44.5 million shares at $29 U.S. each. The company increased the offering size of its IPO after initially planning to sell 37.1 million shares at $25 U.S. to $29 U.S., according to filings with the U.S. Securities and Exchange Commission (SEC).
The debut marks a turnaround for Hertz, which traces its roots to 1918 and today has thousands of locations around the world under the Hertz, Dollar and Thrifty car rental brands.
The company was forced to file for bankruptcy last year (2020) after the COVID-19 pandemic ruined demand for car rentals. The company emerged from Chapter 11 about five months ago.
Hertz stock, which continued to trade over the counter during its bankruptcy restructuring, also became a favorite for amateur traders that made wild speculative bets during lockdowns.
In the lead up to the IPO, Hertz placed an order for 100,000 Tesla electric vehicles as part of an ambitious plan to electrify its rental fleet. It also recruited football star Tom Brady as a pitchman.
Goldman Sachs, JPMorgan Chase and Morgan Stanley advised Hertz on the listing. Its shares are trading under the ticker symbol "HTZ."
