Zipcar shares soar in market debut

In this photo provided by Zipcar Inc., Zipcar Chairman and CEO Scott Griffith, second from right, pumps his fist after ringing the opening bell at the NASDAQ Market Site in New York, Thursday, April 14, 2011. Zipcar's IPO was listed on the NASDAQ Thursday. (AP Photo/Zipcar Inc., Craig Ruttle)

NEW YORK, N.Y. - Shares of Zipcar Inc. are soaring in their market debut after the initial public offering priced better than the company had predicted.

Zipcar shares had priced for $18 a share, above the $14 to $16 projection. That led investment groups who have already been backing the company to cash out more shares than originally planned — about 3 million shares versus 1.7 million.

Zipcar is selling another 6.7 million shares.

At $18 a share, Zipcar's IPO is be worth nearly $175 million — about 40 per cent more than original predictions. Zipcar would get about $120 million of that, before fees.

Shares of the Cambridge, Mass., company, trading under the ticker ZIP on the Nasdaq Stock Market, are up $10.57, or 59 per cent, at $28.57.