Orbitz IPO could raise over $300m

Orbitz, which allows customers to make reservations for airlines, hotels, cruises and rental cars through its website, said 11 million class A common shares will be sold to the public for $22 to $24 apiece.

Analysts said the company faces fierce competition in the online travel sector as it races to distinguish itself from rivals like number one travel site Expedia and number two Travelocity.

Orbitz will sell 4 million shares and stockholders will sell 7 million, the Chicago company disclosed in a filing with the Securities and Exchange Commission.

The company, which was founded by the five largest US airlines in February 2000, predicted that it will net about $82.2 million, which it plans to use for working capital and general corporate purposes. The timing of the IPO was not known.

November has been the most active month for IPOs since November 2000, in terms of priced deals. Another online company, Google Inc., has been seeking bankers to help sell shares to the public, people familiar with the situation have said.

Orbitz has reported operating losses each year since its inception -- $42.9 million in 2000, $105.5 million in 2001 and $18.9 million in 2002. Losses for the first nine months of 2003 hit $2 million.

Revenue was $175.5 million in 2002 and $172.1 million in the first nine months of this year. In those same periods, Orbitz posted net losses of $17.9 million and $1.4 million, respectively.

But it posted net income of $3.9 million in the third quarter on revenue of $64.4 million.

A government probe into Orbitz's role in airline industry competition had delayed the company's plans to go public. The Justice Department in July dropped a years-long antitrust investigation of Orbitz, concluding it had not hampered competition.