Vroom, an online used-car retailer, plans to sell an additional 10.8 million shares of its common stock at $54.50 in a follow-on offering expected to close Sept. 15, according to a Securities and Exchange Commission filing with the regulator last week. The offering is expected to net the e-commerce retailer $568 million in additional capital after expenses and the underwriting discount.
Additionally, the underwriters have an option to purchase an additional 1.62 million shares within 30 days of the offering.
Vroom plans to use the proceeds for “general corporate purposes, including advertising and marketing, expansion of our proprietary logistics operations, increased resources in our customer experience team, technology development, working capital, operating expenses and capital expenditures,” according to the Sept. 10 filing.
When Vroom debuted its initial public offering June 9 at $22 a share, the stock soared 106% in its first day of trading, giving the company a $5.4 billion market valuation. Shares of Vroom [Nasdaq: VRM] were $50.96 today at market close, down 0.51%.
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