Trivago, a Germany-based hotel booking platform majority-owned by online travel service Expedia, yesterday set the range for its initial public offering on Nasdaq at $13 to $15.
The company, which is currently officially named Travel BV but will rename to Trivago as part of the flotation, stands to raised up to $492m in proceeds at the top end of the range.
Expedia currently holds a 63.5% in the company, having acquired the stake from Insight Venture Partners and Howzat Partners for approximately $500m in cash and stock in 2013. The corporate will remain the majority stockholder following the flotation.
Founded in 2005, Trivago enables travellers to search for and book hotel rooms at low rates.
The company has not allocated proceeds to specific areas of business, but hopes the IPO will boost its market recognition, increase financial flexibility and facilitate future access to public equity markets.
JP Morgan Securities, Goldman Sachs and Morgan Stanley are acting as representatives of the underwriters, which also include Allen & Company, Merrill Lynch, Pierce, Fenner & Smith, Citigroup Global Markets, Deutsche Bank Securities, Cowen and Company, and Guggenheim Securities.
Trivago will list on the Nasdaq under the ticker TRVG.