(Reuters) - Online used car seller Vroom Inc on Friday increased the target range for its U.S. initial public offering, looking to raise up to $375 million, as the IPO market gathers steam after the COVID-19 pandemic put several debuts on hold.
The market for new issues has rebounded with Chinese online grocery firm Dada Nexus Ltd DADA.O and payments technology firm Shift4 Payments Inc FOUR.N set to start trading later in the day.
Auto retailers have been slow to embrace e-commerce, but the virus outbreak is forcing dealers to turn to digital tools to close deals without a handshake and arrange for vehicles to be picked up or delivered without requiring customers to visit stores.
Vroom plans to offer about 18.8 million shares at a price range of $18 to $20 as part of the IPO and is expecting a valuation of $2.25 billion at the top end of the range, according to a filing. (bit.ly/374ah6i)
The company earlier expected the offering to be priced between $15 and $17 per share.
Vroom, which filed to go public last month, has reported a more than two-fold rise in sales at its e-commerce business in the first quarter of 2020.
Net loss attributable to the company’s common stockholders narrowed to nearly $41.1 million in the first quarter ended March 31, compared with $45.1 million a year earlier, while revenue jumped nearly 60%.
The company’s 2019 total revenue rose about 39% to $1.19 billion.
Vroom plans to list its shares on the Nasdaq Global Market under the symbol “VRM”.
Reporting by Abhishek Manikandan in Bengaluru; Editing by Shounak Dasgupta