Germany-based automotive e-commerce platform developer Auto1 announced on Wednesday it intends to raise about €1bn ($1.19bn) in an initial public offering that would enable corporates Mutschler Group and SoftBank to exit.
The offering is set to take place on the Frankfurt Stock Exchange in the first quarter of this year and will consist of both newly issued shares and shares sold by the company’s investors. It also plans to launch a private placement alongside the IPO.
Auto1 runs an online platform that auctions off used vehicles to a customer base of more than 60,000 professional car dealers across Europe. It has also launched a consumer-facing used vehicle retail brand called Autohero that operates in nine European markets.
Approximately €750m of the IPO will be allocated to expanding the company’s business, with a particular focus on Autohero, while the rest will go to repaying a convertible loan.
Christian Bertermann, Auto1’s co-founder and CEO, said: “We have a fantastic team and are fully focused on seizing the vast market opportunities ahead of us. The planned IPO is the next logical step to reinforce Auto1 Group as the go-to online destination for buying and selling used cars in Europe.
“We intend to invest significantly over the next years to further strengthen our Autohero brand and operations to deliver the best experience to our customers. Our mission is to build the best way to buy and sell cars online.”
Mutschler Ventures, the corporate venturing arm of real estate developer Mutschler Group, joined DST Global, Cherry Ventures and Piton Capital to invest $200m in Auto1 in 2015.
The company added $404m in debt and series E equity financing in a 2017 E round led Princeville Global and backed by Target Global and Baillie Gifford at a $2.8bn valuation.
Telecommunications and internet group SoftBank’s Vision Fund bought $565m of shares in Auto1 Group through a primary and secondary transaction at a $3.56bn valuation the following year, reportedly increasing the company’s overall funding to almost $1.1bn in the process.
Hedge fund manager Baupost Group and investment firm Farallon Capital Management subsequently co-led a $300m convertible note round for the company in August 2020, participating together with undisclosed existing investors.
