Hertz scraps share sale plan after SEC scrutiny
Hertz Global Holdings Inc., the car rental company that exited bankruptcy in June and has been trading over the counter, is planning to list its shares on Nasdaq.
The company in a filing Friday listed the size of the offering as US$100 million, a placeholder that will likely change. Some of its shareholders, who aren’t identified in the filing with the U.S. Securities and Exchange Commission, plan to sell shares as part of the offering.
Hit hard by the coronavirus pandemic, the company filed for Chapter 11 and emerged after Knighthead Capital Management, Certares Opportunities and Apollo Capital Management bought the business in a US$6 billion deal. The group owns 42 per cent of Hertz, the filing shows.
Hertz’s shares, which have been trading on the Over-the-Counter Bulletin Board as HTZZ, had become a favorite of investors chatting on Reddit message boards.
The company, based in Estero, Florida, reported US$21 million in net income on a revenue of US$3.2 billion during the first half of the year. That compared with a US$1.2 billion net loss on US$2.8 billion in revenue for the same period a year ago.
Last week, Hertz announced that Mark Fields, a former Ford Motor Co. chief executive officer, was taking over as interim CEO. Fields had joined Hertz’s board in June.
Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley are advising the listing. Hertz plans for its shares to trade on the Nasdaq Global Select Market under the symbol HTZ.