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.