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SuperShuttle Files to Sell 3.32 Million Shares in IPO

Transportation: The Phoenix firm says in SEC document that it seeks to expand into new cities, target corporate customers.

June 05, 1998|From Bloomberg News

WASHINGTON — SuperShuttle International Inc., which carried more than 7 million passengers to and from airports in its bright blue and yellow vans last year, plans to sell 3.32 million shares in an initial public offering.

The Phoenix-based company now operates in 15 U.S. cities serving 18 airports, including Los Angeles International. It wants to build a national brand by expanding into new cities and targeting corporate customers, according to its registration with the Securities and Exchange Commission.

SuperShuttle bought its three largest franchises in Los Angeles, Miami and Orange County in March. Also, the company recently was awarded a contract to serve Manhattan and Long Island passengers going to and from the three airports serving New York City.

"With the number of airline passengers growing, travelers are increasingly challenged by traffic congestion, limited parking facilities and expensive parking," the filing said. SuperShuttle offers a "reliable, safe, convenient and economical" alternative to buses, taxis and rental cars, it said.

SuperShuttle Chairman Mitchell Rouse and its chief executive, R. Brian Wier, also hope to increase the company's presence in the corporate transportation market. The company currently offers executive sedan service under the ExecuCar brand in Los Angeles, Burbank, Phoenix, Dallas and Miami.

New investors will own about 35% of the company's 9.57 million shares outstanding after the IPO. SuperShuttle expects shares to fetch between $8 and $10 each. A midpoint price of $9 gives the company an implied market value of about $86 million.

SuperShuttle itself will sell 3 million shares and raise about $24.4 million after expenses, the filing said. The money will be used to repay $700,000 of debt, to fund potential acquisitions and capital expenditures, or for other general purposes.

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