Online travel IPO set

Wednesday, Nov. 26, 2003 | 9:07 a.m.

CHICAGO -- Orbitz Inc., an online travel agency backed by the five biggest U.S. airlines, said it may raise as much as $303.6 million in an initial public offering valuing the company at about $1 billion.

Orbitz, based in Chicago, plans to sell as many as 12.65 million shares at between $22 and $24 a piece, according to a Securities and Exchange Commission filing. The airlines would sell up to 8.65 million shares, while Orbitz would sell up to 4 million shares. The company will use the proceeds to fund its business.

AMR Corp.'s American Airlines Inc. and UAL Corp.'s United Air Lines Inc. plan to cut their stakes in Orbitz to 18.4 percent each. Delta Air Lines Inc.'s shareholding will fall to 12.9 percent, Northwest Airlines will drop to 10.9 percent and Continental Airlines Inc.'s will slide to 9.7 percent.

The airlines and company officials will hold about 31 million shares after the IPO, according to the filing.

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