TrueCar, Focuses on Networks and Platforms After Launching IPO
TrueCar Inc., the Santa Monica based company, is determined to expand its dealership network. It is adding a platform which competitively prices used vehicles now after it has launched its initial public offering. TrueCar shares at the end of the day were up by almost 12 percent and it closed the day at $10.06.
The company raised approximately $70 million in its IPO. The company, which currently trades under the ticker TRUE on the Nasdaq, offered around 7.8 million shares for each at $9 which is less than the range that was projected at $12 to $14 per share.
John Krafcik, the president of TrueCar said in an interview, "We launched into a fairly choppy market. You never have a crystal ball in terms of timing. But we are so looking forward to putting points on the board going forward."
TrueCar is into new and used vehicle sales, which allows its customers to compare what price the nearby shoppers paid for equivalent vehicles.
The platform brings together customers and dealers within the company's network and reduces the time of unnecessary haggling over pricing by both sides. TrueCar in return collects a fee from dealers when they have a successful customer leads; for new vehicles it charges an amount of $299, and for the used ones the charge is $399.