Online used car seller Vroom raises $467.5 million in upsized U.S. IPO By Reuters

Online used car seller Vroom raises $467.5 million in upsized


© Reuters.

(Reuters) – Online used car seller Vroom Inc raised $467.5 million in its U.S. initial public offering, the company said on Monday, as the IPO market picks up momentum after the COVID-19 pandemic placed many debuts on hold.

Vroom priced its IPO at $22, above the initially marketed range of $18 to $20, valuing the company, which is backed by funds such as T Rowe Price (NASDAQ:) Associates and L Catterton, at $2.48 billion. The company sold 21.25 million shares compared with the earlier plan of 18.8 million shares.

Recent recovery in the U.S. stock markets has led to a flurry of IPO-hopefuls entering the race. Royalty Pharma, which buys biopharmaceutical royalties, unveiled plans on Monday to raise up to $1.96 billion in an IPO.

Vroom, which had filed for an IPO last month, reported a more than twofold rise in sales at its e-commerce business in the first quarter of 2020 as the virus outbreak and stay-at-home orders stoked a surge in online shopping.

The company, which use digital tools to close deals and home delivers vehicles to customers, said revenue for the first quarter ended March 31 jumped 60% from a year earlier, and net loss attributable to Vroom’s common stockholders narrowed to nearly $41.1 million from $45.1 million.

Rival Carvana Co (NYSE:), which saw its stock plunge nearly 80% in a month, has recovered dramatically to be up 26% on-year as online car selling gains favor in the post-pandemic world.

Tech-driven insurance startup Lemonade Inc, which counts Japan’s SoftBank Group Corp and Alphabet (NASDAQ:) Inc’s venture capital arm GV among its investors, also filed for a U.S. listing on Monday.

Vroom shares will list on the Nasdaq under the symbol “VRM” on Tuesday.

Goldman Sachs (NYSE:), BofA Securities, Allen & Co and Wells Fargo (NYSE:) Securities were the joint lead bookrunners of the offering.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *


About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.


CONTACT US

CALL US ANYTIME