Goldman Sachs – ACV Auctions, Backed by SoftBank, Files to Go Public
ACV Auctions, the wholesale auto auction site backed by SoftBank, has filed to go public.
ACV said it was seeking to raise $100 million with its initial public offering. That will likely change with future filings. The company didn’t say how many shares it would sell or their price ranges, information that is expected to be disclosed later. The company will trade on the Nasdaq under Fintech Zoom ACVA.
ACV had filed confidentially with the Securities and Exchange Commission in December for the IPO. It made the prospectus public on Friday. Companies typically have to wait 15 days after making their prospectuses public to start meetings with investors to explain their businesses and IPO plan. This means ACV could begin trading publicly as soon as March.
Underwriters on the deal include
(BofA) Securities, and Jefferies.
Founded in 2014, ACV, which stands for “actual cash value,” provides an online marketplace for dealers to buy and sell used cars. ACV also helps process payments, transfer titles, and manage arbitrations, as well as finance and transport the vehicles. The start-up has taken part in 750,000 wholesale transactions with more than 21,000 dealers and commercial partners since its inception. ACV generates revenue from the fees it charges customers for using its marketplace, as well as other services like the transport of cars.
The U.S. auto market is big. In 2019, more than 78 million vehicles were sold in the retail and wholesale markets, generating about $1.7 trillion in sales, according to the prospectus.
ACV isn’t profitable. Losses, however, narrowed to $41 million for 2020 from $77.2 million in 2019, the prospectus said. Revenue rose 95% to $208.4 million.
The Buffalo, New York company has raised $351.6 million in venture funding, according to Crunchbase. SoftBank invested as part of a Series C round in 2018. Other investors include Bessemer Venture Partners, Tribeca Ventures, and Armory Square Ventures. Before the IPO, Bessemer held 29% of total ACV voting power, while Tribeca had nearly 12%, SoftBank had 7.1%, and Armory nearly 6%, the prospectus said.
Write to Luisa Beltran at email@example.com