Travelocity Owner Sabre Files For IPO

January 21, 2014

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Sabre, the owner of online travel agency Travelocity, filed with US regulators to raise up to USD$100 million in an initial public offering of its common stock as it attempts to become a publicly traded company again.

The company, which provides technology solutions to the global travel and tourism industry, was spun off from American Airlines parent AMR in an IPO in 2000.

Sabre, which operates through three business segments, Travel Network, Airline and Hospitality Solutions, and Travelocity, was taken private by TPG Funds and Silver Lake Funds in 2007.

Sabre posted a net loss of USD$127.2 million on a revenue of USD$2.35 billion for the nine months ending September 30, 2013.

The Texas-based company is the largest global distribution systems provider in North America for air bookings.

The IPO comes at a time when the travel and tourism industry is growing at a rapid rate. The industry added USD$6.6 trillion to the global GDP in 2012, according to a research report by the World Travel & Tourism Council.

Air travel and hotel spending is expected to grow at 5 percent annually from 2013 to 2017 while technology spending by air transport and hospitality sectors is expected to grow to USD$70 billion in 2017 from USD$60 billion in 2013.

IPO activity surged last year as low interest rates and a surging stock market enticed investors and encouraged private equity owners to seek an exit.

The filing did not reveal how many shares Sabre planned to sell or their expected price.

The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.