New York's online auto retailer Vroom Inc. aims to raise up to $318.8 million in IPO

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New York's online auto retailer Vroom Inc. aims to raise up to $318.8 million in IPO

New York-based American online used car seller Vroom Inc. said earlier this week that the online automobile retailer was looking to raise as much as $318.8 million at its IPO (Initial Public Offering), which is expected to be tagged between $15 to $17 per share.

Aside from that, according to a US SEC (Securities and Exchange Commission) regulatory filing revealed earlier this week, the online automobile retailer, Vroom Inc.

was planning to offer roughly 18.8 million shares in its IPO, while the online seller of user as well as new cars was expecting a market cap of $1.92 billion following an IPO at the top end of the price range. On top of that, Vroom Inc.

IPO (Initial Public Offering) came forth after three months of severe drought in the IPO market which had witnessed only a handful of public listings, mostly from insurance companies and biopharmaceuticals, however, over the recent past, IPO markets have been observing a higher appetite as the capital markets’ wounds have begun to heal following a virtual halt of three months as beforementioned.

Aside from that, Vroom Inc., which had filed for a public listing last month and had reported over a two-fold rise in sales at its automobile e-commerce platform over the first quarter of 2020 on an annualized basis, offers both new and used cars, spare parts alongside accessories, while the New York-based online auto retailer also provides maintenance, repairing, funding, insurance and vehicle renting services.

Vroom Inc. seeks to raise $318 million in IPO, as capital market heats up

Concomitantly, initial offering of Vroom Inc. shares would likely to be the third-largest IPO in the post-pandemic era after SelectQuote alongside Warner Music, since last week the world’s second-largest music labelling and recording industry tycoon, Warner Music was quoted saying in a statement that the company was planning to sell up to $1.82 billion worth of stocks at its US IPO, which in effect had every potential to become the largest IPO in NYSE thus far this year.