Textbook rental company Chegg files for IPO

Textbook rental company Chegg files for IPO

Textbook rental company Chegg has filed to go public in the US, hoping to raise $150m (£97m) in its initial public offering on the New York Stock Exchange.

The company, based in California and launched in 2005, has built its business on a combination of renting and selling textbooks, including digital textbooks, and providing services to students such as online homework help.

Revenue at the firm has been rising over the past few years, growing from $172m (£111m) in 2010 to $213 (£137m) in 2012. In the first half of 2013, revenue stood at $117 (£75m). However, the company has yet to be profitable, with a net loss of $49m (£32m) in 2012, with a loss of $21m (£14m )in the first half of 2013. However, this compares favourably with a loss of $32m (£21m) in the first half of 2012.

In its prospectus, submitted with its filing, Chegg claimed to reach 30% of all college students in the US, and 40% of final year school students who would be attending college.

The company plants a tree for every textbook it sells or rents, and has planted 5m trees to date according to its website.

Chegg plans to run on the new New York Stock Exchange under the listing CHGG.