US-based online automotive pricing guide Truecar has raised $70m from an initial public offering despite floating substantially below its range.
Truecar issued almost 7.8 million shares priced at $9.00 each, after the range had been set earlier this month at between $12.00 and $14.00. Truecar debuted at $9.74 on Friday and peaked at $10.76 before closing at $10.06. At the time of writing its stock is at $9.90.
Financial services company United Services Automobile Association has remained Truecar’s largest shareholder, despite its stake being diluted from 25.2% to 22.6% through the offering.
The IPO’s underwriters, Goldman, Sachs & Co, J.P. Morgan Securities, RBC Capital Markets, Cowen and Company and JMP Securities, have the option to purchase an additional 1.17 million shares, which would lift the proceeds from the offering to approximately $80.5m.
Truecar secured more than $210m in equity funding and $212.5m in debt prior to the offering. Its investors include financial services firm Capital One, auto industry software producer Dealertrack, Upfront Ventures, Silicon Valley Bank, Keating Capital, GSV Capital, Passport Capital, Allen & Company, Global Investment House and Arcturus Capital.