Carvana, an online used car retailer with locations featuring car "vending machines", raised $225 million by offering 15 million shares at $15, within the range of $14 to $16. Carvana plans to list on the NYSE under the symbol CVNA. Wells Fargo Securities, BofA Merrill Lynch, Citi and Deutsche Bank acted as lead managers on the deal.
Carvana, a online used car retailer with locations featuring car "vending machines", raised $225 million by offering 15 million shares at $15, the midpoint of its $14 to $16 range. At the $15 offer price, Carvana holds a fully diluted market cap of $2.1 billion and an enterprise value of $1.8 billion. The company's CEO and his father, who together own 71% of the company and have majority voting control, have indicated an interest in purchasing up to $20 million of the IPO shares. Wells Fargo Securities, BofA Merrill Lynch, Citi and Deutsche Bank acted as joint bookrunning managers on the deal.
Carvana was created and spun out of DriveTime, a privately-held traditional used car dealership and auto finance company. Since launching in its first market in 2013 (Atlanta, GA), Carvana has expanded to more than 21 markets, and has seen revenue skyrocket. In 2016, total revenue reached $365 million, up from $130 million in 2015 and $42 million in 2014. However, this growth has been accompanied by increasing losses, with the company posting a pre-tax loss of $93 million in 2016, more than double the prior year loss of $37 million.
Carvana will trade on the NYSE under the symbol CVNA.
