CarGurus shares rise more than 75% in trading debut

CarGurus

CarGurus

In its initial offering, the company sold 9.4 million shares at $16 each, and expects to use the proceeds to invest in technology and further expansion.

CarGurus's main competitor, TrueCar, went public in 2014 and its shares have surged 184% in the past 12 months. Steinert, who also co-founded TripAdvisor, said CarGurus wants to do the same thing for vehicle dealerships that TripAdvisor did for hotels: Increase transparency.

CarGurus Inc, an online marketplace for new and used cars, raised about $150.4 million from its initial public offering priced at $16 per share.

IPO research firm IPOboutique.com said the CarGurus IPO was multiple times oversubscribed. Learn more at IBD's IPO page.

The company reported a 70% jump in total revenue to $143.3m in the six months ended June 30, while net income soared more than sixteen-fold to $8.6m.

The company has grown rapidly since it was set up by TripAdvisor co-founder Langley Steinert in 2006, and said in its initial public offering (IPO) filing that it had 61-million average monthly users and 5.4-million vehicle listings in the U.S. as of June 30.

The company with an active network of over 40,000 dealers as of June 30, has operations in United States, Canada, United Kingdom and Germany.

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