Argentina-based Despegar filed for an initial public offering on the New York Stock Exchange on Tuesday that will provide exits to investors including travel booking platform Expedia.
Founded in 1999, Despegar runs an online flight and travel accommodation booking platform that focuses on Latin America and particularly Brazil, where it operates as Decolar. It made a $17.8m profit in 2016 from $411m in revenue which was provided by about 4 million customers.
Expedia paid $270m for a 16.4% share of Despegar in March 2015 as part of an outsourcing partnership agreement that made it Despegar’s preferred accommodation provider.
Hedge fund manager Tiger Global controls Despegar, holding a 57.3% majority stake, while growth equity firm General Atlantic owns 5.4%. Venture capital firms Sequoia Capital, Insight Venture Partners and Accel are also investors but each hold less than 5% of the company.
Morgan Stanley, Citigroup Global Markets, Itau BBA USA Securities, UBS Securities, KeyBanc Capital Market and Cowen and Company have been appointed underwriters for the offering.