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Trivago intends to place itself on NASDAQ in the US under the TRVG symbol.
The offering size, according to documents filed by Dutch holding company Travel BV, is $400 million – a figure that is lower than what some analysts have previously forecast.
Class A shares in the company will be sold to the public by its existing management team, whilst the remaining Class B shares that are owned by Expedia Inc will remain with the global travel group.
The share value is tipped to be in the $11-$16 range, broadening the $13-$15 per share being touted on the company’s roadshow for the 28.5 million units that will be put on the table through the IPO.
One of the leading tech stock analyst groups, SIG, says Trivago’s “secret sauce” has been to use advertising across multiple formats, such as search, which have worked alongside its “Trivago Man” TV campaigns.
An analyst note says:
Warnings about the short and medium-term future remain, as they do for any online travel business – SIG says risks include the inevitable elephant in the room on hotel search, Google, as well as the direct-booking initiatives of hotels and rise of alternative accommodation platforms.