Auto1 Online Car Marketplace Plans To Go Public

Berlin-based Auto1 Group said on Wednesday (Jan. 13) that it plans to go public in the first quarter of this year. Auto1 serves both consumers and dealers.

The company said in a press release that it plans to raise about 1 billion euros ($1.2 billion) from the stock sales. Auto1 said it would put about three-quarters of that back into its business, which includes its Autohero website brand.

Since its beginnings nine years ago, Auto1 has expanded into 30 European markets and has traded more than two million cars. Revenue grew by 21 percent to reach 3.5 billion euros in 2019.

In July, Auto1 raised $300 million in funding in a round led by Farallon Capital Management and the Baupost Group. Existing shareholders, including SoftBank Group, also took part. At the time, Auto1 said the investment was in the form of “convertible notes,” which could become shares of stock in the event of an initial public offering.

At the time, Reuters asked Auto1 Co-CEO Christian Bertermann whether this arrangement meant the company was getting closer to an IPO. “These days, it’s an interesting option,” he replied.

The IPO would have Auto1 listed on the stock exchange in Frankfurt, Germany.

In the release, Auto1 said it has “a proven business model” and that the European used car market offers a “vast market opportunity.” It also touted the “accelerating shift” toward online shopping as another reason for its ongoing success.

“The planned IPO is the next logical step to reinforce Auto1 Group as the go-to online destination for buying and selling used cars in Europe,” Bertermann said in the release. “We intend to invest significantly over the next years to further strengthen our Autohero brand and operations to deliver the best experience to our customers.”

Markus Boser, chief financial officer at Auto Group, said his company has “demonstrated its path to profitability and intends to utilize the liquidity from the intended IPO to invest in its continued transformation of the market.”