Investors greeted the online automotive marketplace CarGurus Inc. with enthusiasm on Thursday, its first day as a public company after raising more than $150 million in an initial public offering.
It shares soared out of the gate and ended their first day on the NASDAQ exchange at $27.58. In its initial offering, the company sold 9.4 million shares at $16 each, and expects to use the proceeds to invest in technology and further expansion.
CarGurus publishes a website that helps customers compare prices of cars, and makes money through advertising and by charging dealers to connect directly with customers. It reported revenues of $143.3 million through the first half of 2017, a 70 percent increase over the same period last year, and net income of $8.6 million.
Langley Steinert, the company’s founder and chief executive, said the IPO was “a significant milestone for CarGurus that reflects the hard work of the entire CarGurus team as well as the support and enthusiasm we’ve had from our consumers, dealers, partners and investors.”
Steinert, who was a co-founder of TripAdvisor, continues to control a majority of CarGurus’ voting shares.Andy Rosen can be reached at firstname.lastname@example.org. Follow him on Twitter at @andyrosen.