Two sources told Bloomberg that online auto-shopping firm TrueCar Inc is thinking of going public in the first half of next year. The two people with knowledge of the matter said the Santa Monica, California-based firm is working together with JPMorgan Chase & Co and Goldman Sachs Group Inc for the share sale. One of the sources said the firm may target a market value of up to USD 1.5 billion in the initial public offering. They spoke on the condition of anonymity because the matter is still confidential.
TrueCar was founded by Scott Painter in 2005. Painter, who is the Chief Executive Officer of TrueCars Inc, was an early adviser to Tesla Motors Inc, an electric car maker, and was also the founder of CarsDirect.com Inc. By offering free pricing information from over 6,000 dealerships, TrueCar said it aids car buyers by making the process of purchasing a vehicle simple, fair and fun. TrueCar currently has a workforce of 325 employees.
In an interview with Bloomberg, Painter said his firm is profitable but did not give TrueCar's expected revenue for 2013. He also revealed that the company had rejected an acquisition offer worth over USD 1 billion but did not name who the buyer was. He also said that the online auto retailer was able to raise USD 200 million two years ago to finance acquisitions. Information gathered from the company's website revealed that TrueCar's stakeholders include GSV Capital Corp, Andell Holdings, United Services Automobile Association, GRP Partners, Anthem Venture Partners, Capricorn Investment Group, DealerTrack, International Investment House, Keating Capital and Passport Capital.
According to a Bloomberg report, 2013 is set to be the best year for auto sales since 2007. Other auto dealers have posted record highs this year. Shares of Autonation Inc have increased 24% while Penske Automotive Group Inc has also risen close to 42%.
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