Expedia's (EXPE) German hotel search platform Trivago filed with the SEC on Monday for a U.S. initial public offering of up to $400 million, after a weak tech IPO environment in the first half of 2016.
Through its holding company Travel BV, Trivago plans to list itself on the Nasdaq under the ticker "TRVG." The company will sell class A American depositary shares in the initial offering, with a yet-unannounced number being sold by the company and the remainder being sold by existing shareholders.
Expedia purchased a 61.6% equity stake in Trivago for $564 million in 2013, which Cowen analyst Kevin Kopelman estimated earlier this year is now worth about $3.2 billion. Expedia, based in Bellevue, WA, will hold class B ADSs in Trivago after the offering, and won't be selling any of its shares in the initial offering.
Trivago said in the filing that it would be classified as a "controlled company" with Expedia at the helm.
Kopelman projects that Trivago as a whole is worth approximately $5.0 billion. In Expedia's third-quarter earnings release on Oct. 27, the company said that Trivago's third-quarter revenue gained 57% year-over-year to $276 million.