One of the big initial public offerings (IPOs) we identified for 2014 was online auto seller TrueCar. On Thursday the company filed its preliminary Form S-1 with the U.S. Securities and Exchange Commission (SEC) to offer up to $125 million in an IPO.
The filing does not indicate either the number of shares to be sold in the IPO or the expected price range. Lead underwriters for the IPO are Goldman Sachs & Co. and J.P. Morgan. Shares will be listed on the Nasdaq under the ticker symbol TRUE.
In 2013 the company generated $134 million in revenues and posted a net loss of $25.1 million. Nearly 90% of the revenues came from transactions and the rest came from the sale of data and consulting services. TrueCar receives its revenue from fees paid by its more than 7,000 certified dealers when a TrueCar customer buys a vehicle from the dealer.
TrueCar said it plans to use the net proceeds from the IPO for general corporate purposes, working capital, operating expenses and capital expenditures. The company may also choose to acquire or invest in complementary businesses or technologies.
Some 94.2 million shares of stock were outstanding on December 31, 2013, and the IPO is based on 94.4 million shares, of which just over 45% are held by officers, directors and investment groups.
Of our top 10 IPOs to watch for this year, TrueCar is the fifth to file, after Alibaba, GoPro, GE Capital and Virtu.
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