RealTime IT News

Kozmo Races to Go Public, Sets Expansion

One day after winning a $60 million investment from e-tailing giant Amazon.com, delivery service Kozmo.com Tuesday filed to take the company public.

Kozmo is expected raise $150 million by trading on the Nasdaq with the symbol "KZMO." The IPO is underwritten by Credit Suisse First Boston, Salomon Smith Barney and U.S. Bancorp Piper Jaffray, according to its filing with the Securities and Exchange Commission.

Net proceeds from the IPO will be used for general corporate purposes, including capital expenditures and working capital. The company also plans to expand its delivery services to 10 new markets by the end of the year.

Also on Tuesday, Kozmo.com widened its delivery area to include Chicago. Following last month's entrance into Los Angeles, residents of the Windy City can now get food, health and beauty products and video rentals delivered to their door within one hour. The company, started in New York, has already expanded to Boston, Washington, D.C., San Francisco and Seattle with a wide selection of entertainment and convenience products.

On Monday, Amazon.com (AMZN) invested $60 million into the delivery company, and sealed a three-year strategic alliance in which Amazon.com will begin offering a one-hour delivery option to its customers.