eCommerce vehicle retailer Vroom has started the initial public offering (IPO) of its common stock, according to an announcement.
The company’s IPO price is forecasted to be in a range from $15 to $17 per share. Vroom said it foresees granting the underwriters a 30-day choice to buy a maximum of 2,812,500 common stock shares at the IPO price to handle over-allotments. The shares are forecasted to trade with the “VRM” ticker symbol on the Nasdaq Global Select Market.
Allen & Company, Goldman Sachs, Wells Fargo Securities and BofA Securities are working as underwriter representatives and book-running managers. Baird, Wedbush Securities, JMP Securities, William Blair and Stifel are working as the offering’s co-managers.
Vroom said a Form S-1 registration statement regarding the securities “has been filed with the Securities and Exchange Commission but has not yet become effective,” according to the announcement. The company noted that the securities “may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.”
The offering will only be made via a prospectus, according to the company, which can be received from BofA Securities, Goldman Sachs, Allen & Company and Wells Fargo Securities.
In December, Vroom raised $254 million in a Series H funding round led by Durable Capital Partners. L Catterton, T. Rowe Price Associates and others participated.
The company made a platform that puts the car buying process directly under the sellers’ and purchasers’ control without a car dealership or intermediary required.
Vroom said it would use the round’s funds to grow its staff, operations, technology and marketing in addition to offerings, per news in December. At the time, it was noted that Vroom planned to keep hiring additional engineering and product staff into this year.
“This new round of funding provides the necessary resources to further grow and scale our business,” said Vroom CEO Paul Hennessy at the time.
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