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NAPLES — China's biggest rental-car company, Car Inc., plans an initial public offering of stock.
Naples-based Hertz acquired a 19% stake in the Chinese company in April 2013 and plans to invest another $30 million in the public offering.
The IPO will help the Hertz-Car partnership expand its network further as Car reports locations in 70 major cities and 162 small cities as of June 30, 2014.
Car reported substantial growth in recent years, increasing its fleet size from 25,845 vehicles in December 2011 to 52,498 vehicles in June 2014. Its customer base rose four-fold over the same period, from approximately 450,000 to 1.96 million.
“The potential for growth in the Chinese car rental market is profound and we believe Car is the strongest competitor,” says Naren Srinivasan, Hertz senior vice president of global strategy and corporate development, in a statement. “When Car expands its fleet, the partnership should be able to continue to thrive, with Hertz and Car being co-branded at more than 600 locations in China, giving millions of Chinese and visitors to China greater consumer choice to travel in this inspiring country.”
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