Online automotive retailer Vroom, Inc. has priced its initial public offering to raise $465.5 million, which reportedly will give it a market capitalisation of over $2 billion.
The New York City-based online marketplace for used cars has priced its 21.25 million shares at a price of $22.00 per share. The price has been raised amid increased demand.
The company earlier expected IPO of 18.75 million shares for price range of $18 to $20 per share that was raised from initial expectation of $15 to $17 per share.
Vroom now said it has granted the underwriters a 30-day option to purchase up to an additional 3.19 million shares at the IPO price.
Vroom’s shares would begin trading on the Nasdaq Global Select Market on Tuesday under the ticker symbol “VRM.” The offering would close on June 11, subject to customary closing conditions.
In the offering, Goldman Sachs & Co. LLC, BofA Securities, Allen & Company LLC and Wells Fargo Securities are serving as joint lead book-running managers.
It was in mid May that Vroom filed with the U.S. Securities and Exchange Commission with respect to its IPO of up to $100 million shares of common stock.
The company then said the net proceeds would be used for general corporate purposes, including advertising and marketing, technology development, working capital, operating expenses and capital expenditures.
The company, which was founded in August 2013 by Marshall Chesrown, Kevin Westfall and Scott Chesrown, is backed by L Catterton, General Catalyst Partners and T. Rowe Price Associates Inc.
In its IPO filing, Vroom disclosed its first-quarter net loss of $41.06 million, and revenue of $375.8 million. The company recorded around 19,000 sales last year.
Source: Read Full Article