Used car marketplace startup Vroom’s shares opened at $40.25 on its first day of public trading, nearly 83 percent above its IPO price.
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The company priced its shares at $22 on Monday, above the increased price range of $18 to $20 it had set, raising $467.5 million by selling 21.25 million shares through its IPO. Vroom originally set a price range of between $15 and $17.
Vroom sells used cars to customers online and through its app, handling both the pickup from the seller and delivery to the buyer. The company also offers insurance, financing and warranty products.
Traded on the Nasdaq under the ticker symbol VRM, the company last raised $254 million with its Series H in December 2019. The round for the New York-based company was led by Durable Capital Partners LP.
The company reported $375.8 million in revenue for the first quarter of 2020, up from $235.1 million during the same period last year. It also had a net loss of $27.1 million during Q1 2020, down from $41.1 million in Q1 2019.
Vroom follows ZoomInfo Technologies in what we could call a resurgence of tech IPOs this year. The IPO market slowed down significantly when the COVID-19 pandemic took hold in the United States in March. However, ZoomInfo went public last week with its stock surging on its first day of trading, and yesterday insurance tech startup Lemonade filed its S-1 registration document, the first step to going public. Today, Vroom’s stock is trading at nearly double its IPO price (around noon EST) with its public market debut, after pricing well above its initial range.
We’ll update this story at the close of market, so check back later today.
Illustration: Li-Anne Dias