Carvana Rival Online Car Seller Vroom Files To Go Public

Online used automobile seller Vroom Inc. on Monday said it has filed with the United States Securities and Exchange Commission to go public.

What Happened

The Carvana Co.. CVNA rival stated in the filing it intended to list at the Nasdaq Stock Market under the ticker "VRM."

Vroom hasn't yet determined how many shares it intended to sell as part of the initial public offering, or at what price.

Goldman Sachs Group Inc. GS, Wells Fargo & Co. WFC, Allen & Co. LLC., and Bank of America Corp BAC will serve as the joint lead book-running managers for the IPO, the company noted.

The Wall Street Journal earlier this month reported that Vroom was seeking to go public in June.

The e-commerce company said its business took an initial severe hit due to the novel coronavirus (COVID-19) pandemic, but after it reduced inventory prices in late March, "demand returned to pre-COVID-19 levels."

"We experienced robust ecommerce vehicle sales; however, those sales were at a greatly reduced gross profit per unit," it said in the filing.

"Due to the significant reduction in our inventory through April 30, 2020, we expect material decreases in future unit sales, revenue and gross profit until we are able to return inventory levels to pre-COVID-19 levels."

Carvana Price Action

Carvana shares closed 6.5% higher at $98.59 on Monday. The shares traded 4.3% lower in the after-hours at $94.40.