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IPO Review HERTZ HTZ Stock Going Public On The NASDAQ

(Bloomberg) 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.

Hello everyone welcome to ipo marketwatch thank you very much for joining me in this video don’t forget that you can follow me on twitter you can follow me on facebook and on patreon those are my main social medias uh accounts i have other ones but mainly um you’ll find me they’re more active so you can follow me the links are in the description of the video below

And so in this video we’re going to talk about hertz initial public offering kind of it’s not an ipo it is i guess you can say an up listing in a way right because they’re already over the counter so hurts global holdings corporation the car rental company that exited bankruptcy back in june has been trading over the counter right and it’s planning to list its

Shares on the nasdaq the company in a filing friday listed the size of the offering as 100 million dollars for now that could change it it’s just a placeholder now this is this news came out from bloomberg some of its shareholders who aren’t identified in the filing with the u.s securities and exchange commission plan to sell to sell uh shares as part of the

Offering so keep that in mind now he hit hard by the quaranti pandemic the company filed for chapter 11 and emerged after nighthead capital management um basically apollo apollo capital management also bought the business for 6 billion 6 billion dollars now the positive side i understand that it was near bankruptcy was going near to just end as a company but

The fact is that apollo capital management which i like more than nighthead capital management apollo capital management is a company that goes serious when they invest in something and uh most of the times and you know for these big companies to offer six billion dollars to buy hertz that means they see something that they can deposit they see something they

Can turn things around here make a big success story out of it you know some people will say well mike the success story will be the ipo selling the shares to us and then pretty much that’s it i don’t yeah you know there will be people that will look to take advantage of this obviously and cash in but i think that we’re looking at a company that they will want to

Manage for the long term right so herd shares which have been trading over the counter as tickets htz had become a favor of investors during reddit right uh in during ready in red during that time i remember everybody was like yeah buy hurts turns out they were right because let’s look back then when it was pretty much going to for the end and uh bankruptcy and

All that i myself back there remember saying to myself there’s no way i’m buying any of these shares these companies is headed for bankruptcy it’s over i’m not buying any well well the reddit community was right because it turned things around and went way back up so those who bought back then in june um made some money right a lot of money so the company based

In estonia florida reported 21 million net income on a revenue of 3.2 billion dollars during the first half of the year that that compared with 1.2 billion net loss and on a 2.8 billion dollars in revenue for the same time last year so big turnaround right last week kurtz announced that mark fields a former ford motor company chief executive officer was taking

The interim ceo of the company so things are really looking like things are going to turn around goldman sachs jp morgan chase morgan stanley will be advising the listing and the ticket symbol will be h t z right hertz global holdings which is now the over the counter htz will be on the nasdaq officially as htz the offering for the up listing basically is going

To come at the end of q4021 so towards the end of the year hertz will be publicly traded on the nasdaq let’s look at the market cap it’s 12 billion dollars total depth of the company is 10 billion dollars and they only have cash of 1.8 billion so this is definitely something that hurts and it’s something to keep in mind institutions don’t really hold much 0.09

Percent hedge funds on 41 percent of the company and the rest is retailers revenue in 2018 they had about 9.5 billion dollars in revenue in 2019 it went to 9.7 billion so you can see back then when there was no pandemic and so on things were healthy company was doing awesome 9.5 then it went to 9.7 billion dollars but then the pandemic shrugged and it went from

9.7 billion to 5.2 billion dollars and then still in 2020 and the june uh ended june 30th it was a 2.7 for the first 6 months 2021 though it did jump to 3.1 billion as compared to the first six months of the 20 was 2.7 so it seems to be coming back maybe uh within the next two years we’ll jump back to that 9.5 9.7 billion dollar revenues right and that would be

Quite a nice comeback and the stock will be worth more and so on but that remains to be seen the debt is really high their total expenses for the first six months of 2020 was 4.1 billion whereas the total expenses for the first six months of the 21 dropped to 3.1 billion so they’re doing good on that we can see here more for cash and equivalents revenue earnings

Total assets and so on some of the risks that they state in their sec filing is that they have a risk related to their emergence from chapter 11 bankruptcy so we recently emerged from bankruptcy which could adversely affect our business and relationships so some of the risks to say is the ability to attract motivate uh yes motivate and retain key executives

And employees to remain in the company employees may be more easily attracted to other employment opportunities and so on um our corporate business strategy is subject to continued development evaluation and implementation by our management of our new management board directors and so on so yes this is going to be a company that for the next two to three five

Years will have to redevelop itself and bring itself back to it to its fee is it going to be worth investing in hertz it would be if the price is right basically that’s it for me if the price is right it would be worth it now if it comes probably it’s trading already what uh 2570 if it comes yeah it’s probably going to come at that price right 2570 around there

Depending what at the end of the year the share price will be but if it comes at 25.70 let’s say 26 as an offering on the nasdaq i don’t know if i want to be part of that i don’t know um i might want to wait and see thank you very much for watching this video wish you guys all the best take care

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IPO Review HERTZ HTZ Stock Going Public On The NASDAQ By IPO Market Watch