Bloomberg News

TrueCar Seeks to Raise Up to $109 Million From Public Offering

May 05, 2014

TrueCar Inc. is seeking to raise as much as $108.9 million in an initial public offering of the auto-buying Website.

TrueCar, which provides pricing and vehicle data for consumers and helps car dealers find customers, plans to sell 7.76 million shares for $12 to $14 apiece, according to a regulatory filing today (ZEN:US). At the high end of the range, Santa Monica, California-based TrueCar would have a market value of $994.5 million, based on 71 million shares to be outstanding after the offering, data compiled by Bloomberg show.

About 3.2 percent of new vehicle sales in the U.S. were handled by TrueCar in the first quarter, the company estimates. TrueCar’s revenue, which jumped 75 percent in the three months through March, comes from fees paid by dealers participating in its network, according to the filing. The company remains unprofitable.

TrueCar named John Krafcik, the former head of Hyundai Motor Co.’s U.S. operations, as president last week. The company was started in 2005 by Scott Painter, who also founded CarsDirect.com and was an early adviser to electric-car maker Tesla Motors Inc.

Separately, Zendesk Inc. (ZEN:US), which provides customer-service software to corporations, set terms for its IPO. The San Francisco based company, with 42,000 customers, is seeking to raise as much as $111 million, for a market value as high as $701 million, the filing showed.

TrueCar plans to list on the Nasdaq Stock Market under the symbol TRUE, while Zendesk will be located on the New York Stock Exchange as ZEN. Goldman Sachs Group Inc., JPMorgan Chase & Co. and RBC Capital Markets are managing the TrueCar share sale. Goldman Sachs, Morgan Stanley and Credit Suisse Group AG are managing the Zendesk offering.

To contact the reporter on this story: Leslie Picker in New York at lpicker2@bloomberg.net

To contact the editors responsible for this story: Mohammed Hadi at mhadi1@bloomberg.net James Callan


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Companies Mentioned

  • ZEN
    (Zendesk Inc)
    • $24.38 USD
    • -0.52
    • -2.13%
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