Used-car online retailer Vroom Inc. expanded its U.S. initial public offering and priced it above the marketed range to raise $468 million, based on a valuation of more than $2.5 billion. Its shares surged in value immediately after the offering went live.
(Autonews)
Vinay's key takeaways:
- Vroom, is looking to ride on the growing consumer preference for online shopping, accelerated by the pandemic. And investors are placing a higher value on next-generation companies that can thrive in a post-COVID economy. Tech-focused used car platforms, like Vroom, can be more agile than traditional dealers.
- Consumers are becoming more willing to buy cars online, the COVID-19 outbreak has accelerated that trend.
- Vroom’s main competitor, Carvana has rebounded since March, at a time when most of the U.S. went under shelter-in-place orders. Shares of Carvana, are trading more than 600% above the company’s 2017 IPO price.