Orbitz stock jumps as online travel company goes public

<p>Orbitz Inc. shares surged higher in their trading debut Wednesday as investors enthusiastically greeted the Internet travel companys arrival on the Nasdaq Stock Market.</p><p>The companys stock, priced at $26 per share late Tuesday, began trading around midday and initially jumped as much as 12 percent. After less than half an hour, nearly 6 million shares had been bought and sold and the going price was $27.71, up 7 percent.</p><p>Investors appetite for new issues has returned after a long dry spell. Following a slow period for IPOs during the first nine months of 2003, activity has been brisk since early October.</p><p>Orbitz, which operates a Web site selling flights, lodging, rental cars and vacation packages, said it estimates its proceeds from the initial public offering at $93.9 million. Company officials said they intend to put the money toward paying off debt and for general corporate purposes.</p><p>Chicago-based Orbitz, whose shares trade under the symbol ORBZ, was started in early 2000 with airline investors American, Continental, Delta, Northwest and United. In October, United was given bankruptcy court approval to sell some of its 26 percent stake in Orbitz.</p><p>It is the third-largest online travel firm behind Expedia and Travelocity but has yet to become profitable.</p><p>In the first nine months of 2003, Orbitz had a net loss of $1.4 million on revenue of $172.1 million, according to the SEC filing. Since its founding in February 2000 until the end of September, Orbitz said its losses, excluding one-time charges, have totaled $169.3 million.</p><p>Orbitzs IPO comes as investors warm up again to new offerings after many got burned in the dot-com bust.</p><p>Almost half of the more than 50 companies that have gone public this year have been in the last two months, with more slated before years end. The fourth quarter is expected to be the busiest period for IPOs since the end of 2000, according to IPOhome.com, a division of Renaissance Capital in Greenwich, Conn.</p><p>IPO activity still pales, however, in comparison to the dot-com days when they were snatched up by frenzied investors sensing a chance for quick profits. There were 480 offerings in 1999 and 406 in 2000.</p><p>___</p><p>On the Net:</p><p>HASH(0x2865914)</p>