Vroom priced its IPO at $22, above the initially marketed range of
$18 to $20.
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 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,
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.
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