Vroom certainly lived up to its name in its first day as a public company, as the online car dealer's stock more than doubled from its initial offering price.
The New York company sold 21.25 million shares at $22 each, raising $468 million. And it gave the underwriters an option on nearly 3.2 million more shares if demand for the offering requires.
The offering valued all of Vroom at more than $2.5 billion.
The shares trade on the Nasdaq Global Select Market under the symbol VRM. At the time of publishing, the shares of Vroom were changing hands at $46.14.
Like many young Internet companies, Vroom is unprofitable. For the three months ended March 31, Vroom's loss widened to $41 million from $27 million in the year-earlier quarter. Revenue climbed to $376 million from $235 million.
The company hasn't been profitable since operations began in 2012.
Vroom said in its IPO filing that the coronavirus pandemic could move more car buyers online. But it also said the COVID-19 pandemic hurt its e-commerce operations, with online sales falling 15% from March 11 to March 31.
Vroom’s backers include the private-equity firm L Catterton, the venture-capital firm General Catalyst Partners and the investment bank T. Rowe Price Associates
The market for initial public offerings has been heating up this month. Last week, the IPO market saw more than $7 billion raised globally, including Warner Music Group (WMG) - Get Report and ZoomInfo Technologies (ZI) - Get Report, according to Bloomberg.
Earlier in the year, the IPO market was at a virtual standstill. Investors were turned off by the woes of companies like WeWork that had sought to go public. And they were frightened as the stock market went south in March amid the pandemic.