Auto Trader is launching a £2.35 billion IPO today
Auto Trader, a British-based online marketplace for new and used cars, confirmed its share offer price for the launch of its IPO today.
In a regulatory statement Auto Trader said shares are priced at 235p each, making the total market capitalisation at £2.35 billion ($3.49 billion). It is releasing 590,000,000 shares worth 59% of the company.
Auto Trader added that it hopes to raise approximately £437 million from the listing, after deducting £23.3 million from the underwriting costs and other fees and expenses of the IPO.
Auto Trader is solely focused on the UK and Ireland car market. It has one of the strongest brand recognition levels in the UK car industry. According a HPI Brand Tracker survey, conducted between October and December last year, 92% of Britons said they knew who Auto Trader is and what it does as a business.
Around 80% of UK car retailer forecourts advertise via the website and now 65% of UK used car transactions involve cars listed on autotrader.co.uk.
Auto Trader generated £237.7 million in continuing revenues for the full year of 2014 (52 week period to 30 March 2014). In February, it said that after becoming a 100% digital business in June 2013, it has managed to secure such a large market share that now was right time to float.