TrueCar Raises $70 Million in U.S. IPO
Via Bloomberg
TrueCar Inc., the auto-buying website, raised $70 million in its initial public offering, pricing the shares below the marketed range.
TrueCar, which provides pricing and vehicle data for consumers and helps car dealers find customers, sold 7.78 million shares for $9 each, according to data compiled by Bloomberg, after offering them for $12 to $14 apiece.
About 3.2 percent of new vehicle sales in the U.S. were handled by TrueCar in the first quarter, the company estimates. TrueCar’s revenue, which jumped 75 percent in the three months through March, comes from fees paid by dealers participating in its network, according to the filing. The company remains unprofitable, the filing shows.
At the IPO price, Santa Monica, California-based TrueCar would have a market value of $639 million, based on 71 million shares outstanding after the offering, according to the original terms of the prospectus.
TrueCar named John Krafcik, the former head of Hyundai Motor Co.’s U.S. operations, as president this month. The company was started in 2005 by Scott Painter, who also founded CarsDirect.com and was an early adviser to electric-car maker Tesla Motors Inc.
TrueCar plans to list on the Nasdaq Stock Market under the symbol TRUE. Goldman Sachs Group Inc., JPMorgan Chase & Co. and RBC Capital Markets managed the TrueCar IPO.
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