Hotel-Search Firm Plans IPO of Up to $428 Million

Travel B.V., which plans to change its name to Trivago, provided details of its planned initial public offering of as much as $428 million in American depositary shares.

The hotel-search site's planned IPO includes 28.5 million ADRs that are expected to price in an estimated range between $13 and $15 apiece, according to a regulatory filing. The company plans to sell roughly 18.1 million ADRs, and selling shareholders plan to sell 10.4 million ADRs.

Trivago expects to use its share of the IPO proceeds, estimated at about $235.4 million, to increase its financial flexibility and for other purposes. The company won't receive any proceeds from the selling holders' ADRs.

After the IPO, Trivago will continued to be controlled by Expedia Inc., its biggest shareholder.

The company's online and mobile platform allows consumers to search through multiple hotel booking options at the same time and compare prices. Revenue is generated from online travel agencies, hotel chains and independent hotels that advertise on its site. The advertisers are charged on a "cost-per-click" basis when a user clicks on an advertised hotel rate and is referred to that advertiser's website, where the booking can be completed.

Travel B.V. has applied to have its ADRs listed on Nasdaq under the ticker symbol TRVG.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

December 05, 2016 12:25 ET (17:25 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.