Vroom Raises $468 Million in Initial Public Offering

Vroom's IPO is upsized to 21.25 million shares and shares are priced at $22 each.
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The initial public offering of Vroom Inc. was expanded to 21.25 million shares and the price was boosted to $22 a share, raising $468 million for the online seller of used vehicles.

Vroom earlier had marketed 18.75 million shares for $18 to $20 a share.

The company, whose backers include L Catterton, General Catalyst Partners and T. Rowe Price Associates, moved up the pricing of the initial public offering to Monday after earlier planning to sell the shares on Wednesday, according to a report from Bloomberg.

The company is valued in the offering at more than $2.5 billion.

The company reported a loss of Vroom $41 million on revenue of $376 million for the three months ended March 31, compared with a year-earlier loss of $27 million on revenue of $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. However, the company did acknowledge that the covid-19 pandemic did hurt its e-commerce operations, with online sales falling 15% from March 11 to March 31.

Vroom’s shares are expected to begin trading Tuesday on the Nasdaq Global Select Market under the symbol "VRM."

Vroom's IPO follows that of Warner Music Group  (WMG) - Get Report, which began trading last Wednesday, and ZoomInfo Technologies  (ZI) - Get Report, which debuted last Thursday. 

The market for initial public offerings has been heating up this month. Last week, the IPO market saw more than $7 billion raised globally, according to a report from Bloomberg.