Tesla Model 3 electric vehicles at a Hertz neighborhood location.
Shareholders of Hertz Global Holdings increased the size of their public offering of shares by 20%, ahead of plans to relist the stock on the Nasdaq on Tuesday under the ticker symbol “HTZ.”
The Estero, Florida-based car-rental company late Monday said the pricing of the upsized public offering of 44.52 million shares, up from 37.1 million announced last week, will be $29 – the high-end of its previously targeted range. The shares are being offered by shareholders including Cougar Capital and Oaktree Capital Management, which raised $1.3 billion under the new terms, according to Bloomberg.
Of the shares offered, Hertz expects to repurchase from the underwriters more than 10.3 million shares at an aggregate purchase price of $300 million.
Since October 2020, Hertz’s common stock has traded on the over-the-counter market under the symbol HTZZ, following its Chapter 11 filing in May 2020. The post-bankrupt company previously applied to list on the Nasdaq under the ticker symbol “HTZ.” The over-the-counter shares closed Monday at $32.62.
The company’s outstanding warrants also will be listed Tuesday on the Nasdaq under the ticker symbol “HTZWW.”
Hertz, which exited bankruptcy protection in June, said Goldman Sachs, JPMorgan and Morgan Stanley are acting as lead bookrunning managers for the proposed offering, which is expected to close Friday.
The public offering and repurchase plan follow a run-up in the company’s stock after it announced former Ford CEO Mark Fields as its interim CEO and a plan to add 100,000 Tesla cars to its fleet through 2022.
It’s unclear the status of Hertz’s deal with Tesla, after CEO Elon Musk last week said no deal had been signed. Hertz has declined to directly comment on the deal, citing its plans remain on track.
During the early days of the coronavirus pandemic, Hertz filed for bankruptcy protection — but as travel rebounded somewhat and demand for rental vehicles picked up, investors from Knighthead Capital Management and Certares Management said they would take over the company.