Vroom, an online used car marketplace, announced terms for its IPO on Monday.
The New York, NY-based company plans to raise $300 million by offering 18.8 million shares at a price range of $15 to $17. At the midpoint of the proposed range, Vroom would command a fully diluted market value of $2.0 billion.
In December 2015, the company acquired Houston-based Texas Direct Auto, which included its proprietary vehicle reconditioning center (Vroom VRC), its sole physical retail location, and its Sell Us Your Car centers.
Vroom was founded in 2012 and booked $1.3 billion in revenue for the 12 months ended March 31, 2020. It plans to list on the Nasdaq under the symbol VRM. Goldman Sachs, BofA Securities, Allen & Company and Wells Fargo Securities are the joint bookrunners on the deal. It is expected to price during the week of June 8, 2020.
