Trivago, Expedia’s (EXPE) German-based hotel booking site, has filed for an IPO (initial public offering) in the United States. It’s seeking to list its ADRs (American Depositary Receipts) on Nasdaq under the symbol TRVG.
The IPO will be filed through a holding company called Travel BV. The company plans to raise ~$400.0 million, a placeholder amount that may change.
Trivago plans to have two classes of shares. Class A shares, currently held by Trivago’s management, includes Rolf Schroemgens, Peter Vinnemeier, and Malte Siewert. These will be available for sale to the public under the Trivago IPO. Class B shares are held by Expedia and will not be available for sale.
In 2012, Expedia acquired a controlling stake of 61.6% in Trivago. It paid $628.0 million in cash and stock, valuing the company at ~$1.0 billion. The acquisition was in line with Expedia’s plan to expand its global presence.
For more details on the company, please read our complete overview of Expedia.
You can get exposure to Expedia by investing in the First Trust Dow Jones Internet ETF (FDN), which has 3.0% of its holdings in Expedia. Tripadvisor (TRIP), Expedia’s rival, forms 1.7% of the fund’s total holdings. However, the fund doesn’t have any stake in archrival Priceline (PCLN), which has a stake in Ctrip.com (CTRP), China’s leading online travel agency player.
In this series, we’ll look at the reasons behind the Trivago IPO. We’ll also analyze Trivago’s financial and key metrics performance. Then we’ll wrap up the series by looking at Trivago’s possible valuation.