TRUECar Secondary Offering Nears Fruition

Upon the completion of this offering, the executive officers, directors and 5% stockholders of the company and affiliates will beneficially own, in aggregate, approximately 66.4% of the company’s outstanding capital stock. The underwriters for the secondary offering at J.P. Morgan, JMP Securities, Goldman Sachs, Morgan Stanley, RBC Capital and Cowen.

Another observation is that TRUECar CEO Scott Painter expressed an interest in purchasing up to an aggregate of approximately $500,000 of common stock at public price from this offering.

TRUECar operates a pricing and information website for new and used car buyers and dealers. The site gives buyers information on what others have paid for the same or similar cars, upfront pricing and a network of TRUECar dealers. The company has its headquarters in Santa Monica, Calif.

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The proceeds from this offering are expected to be used for general corporate purposes. A portion of these proceeds may be used to invest in complementary technologies, solutions, products, services, businesses or other assets.

Shares of TRUECar closed up 0.5% at $16.42 on Friday. The consensus analyst price target is $20.40, and the post-IPO trading range is $9.05 to $25.00. When the company announced last week that its roadshow would be forthcoming, shares fell from $17.19 the prior day to $16.62.