TrueCar (TRUE), a site for auto buyers, rose 20% within hours of its Nasdaq debut on Friday. This brought the market value of the company to about $764 million.
TrueCar priced lower than expected at $9 per share, after seeking a range of $12 to $14. The company raised about $70 million in the offering.
“If you haven’t heard of TrueCar, you probably will soon,” CEO Scott Painter told FOX Business. “It’s time to take the business to the next level.”
TrueCar matches consumers with a network of 7,000 dealers. The company also provides pricing data and other research information for prospective buyers.
The company saw revenues of $43.9 million in the first quarter of this year, an increase from $25 million in the same period last year. Net loss was $9.9 million, up from $9 million last year. The company has accumulated a deficit of $172.5 million since it was founded in 2005.
TrueCar says it may use some of the proceeds to acquire complementary businesses. It will also be used towards working capital.
Shareholders include United Services Automobile Association, Capricorn Investment Group and Upfront Ventures. Painter owns a 13% stake in the company.
Although there have been concerns about the lackluster performance of IPOs in the past month, Painter says the timing was right for TrueCar. “We’re able to forecast and really predict how the business operates.”
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