The counter of Hertz car rental company at Nice International Airport during the coronavirus disease (COVID-19) outbreak in Nice, France on May 27, 2020.
Eric Gaillard | Reuters
Hertz Global Holdings said Wednesday that some of the car rental shareholders will go public with 37.1 million common shares at a discount of $ 25 to $ 29 per share.
Hertz said it intends to buy back between $ 250 million and $ 500 million of shares from the shareholder proposal underwriters.
Shares closed Tuesday at $ 35.06 a share, up 2.6%. Hertz shares fell 7.4% to $ 32.45 on Wednesday.
The buyback plan follows a rally in the company after it announced former Ford CEO Mark Fields as interim CEO and plans to add 100,000 Tesla vehicles to its fleet by 2022.
Hertz said it would not receive any proceeds from the sale. The company expects to fund the buyback in cash.
Since October 2020, Hertz common stock has been trading OTC under the symbol HTZZ, after it was filed under Chapter 11 in May 2020. Hertz applied to be listed on the Nasdaq under the ticker HTZ.
Goldman Sachs, JPMorgan and Morgan Stanley act as lead bookrunning managers of the proposed proposal, Hertz the release says.
During the growing coronavirus pandemic, Hertz filed for bankruptcy protection, but as travel recovered somewhat and demand for rental cars increased, investors from Knighthead Capital Management and Certares Management said they would take over the company.