IPO

Vroom Shifts IPO Into High Gear; Looks To Raise $467.5M

As it looks to bring in up to $467.5 million from investors, Vroom intends to provide pricing for its initial public offering (IPO) ahead of schedule on Monday (June 8), Bloomberg reported, citing unnamed sources.

The vehicle sales platform had previously looked to price its share sale on Wednesday (June 10).

Bank of America Corp., Wells Fargo & Co., Allen & Co. and Goldman Sachs Group Inc. are heading up the offering. One of the sources in the report said that the company’s shares are forecasted to commence trading on the Nasdaq Global Select Market under the VRM ticker symbol on Tuesday (June 9).

The firm has been promoting 18.75 million shares for a range of $18 to $20 a piece, per U.S. Securities and Exchange Commission filings cited by the report.

Vroom experienced a net loss of $41 million on revenue of $376 million for the quarter concluding on March 31, while it had a loss of $27 million on revenue of $235 million for the same timeframe in 2019.

According to an earlier announcement, Vroom had begun IPO of its stock, and its price was previously forecasted to be in the range of $15 to $17 a share.

In December of last year, Vroom notched $254 million in a Series H funding round led by Durable Capital Partners. L Catterton, T. Rowe Price Associates and others participated.

The firm made a platform that puts the car buying process directly under seller and buyer control sans the need for a car dealership or intermediary.

Vroom had previously said it would use the funding to grow its workforce, operations, marketing and technology in addition to products.

It also opened an engineering port in Detroit last year — a city it chose for its “wide pool of skilled tech, design and product talent, as well as its longtime automotive industry legacy.”

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