Summary

Carvana Company (Pending:CVNA) expects to raise $210 million in its upcoming IPO ($242 million if the underwriters exercise their option to purchase additional shares). Based in Phoenix, Arizona, Carvana is a leading ecommerce platform for selling used cars.

Carvana will offer 15.0 million shares at an expected price range of $14-16. If the underwriters price the IPO at the midpoint of that range, CVNA will have a market capitalization of $2 billion. This assumes underwriters exercise their option to purchase additional shares.

The company filed for the IPO on March 31, 2017.

The lead underwriters are BofA Merrill Lynch, Citigroup Global Markets, Deutsche Bank Securities, and Wells Fargo Securities. Underwriters are BMO Capital Markets, JMP Securities, Robert Baird & Company, and William Blair & Company.

Business Summary: Ecommerce Platform for Selling Used Cars

(Source: Company Website)

Carvana, LLC sells used cars online. The company was incorporated in 2012 and is based in Phoenix, Arizona. It has distribution centers in Atlanta, Georgia; Nashville, Tennessee; and Charlotte, North Carolina. It also has physical presence in Houston, Austin, Dallas, San Antonio, and Pittsburgh, Texas; and St. Louis, Missouri.

The company launched in January 2013, and since then, it has bought, reconditioned, sold, and delivered close to 27,500 used cars to consumers through its website. This generated $541 million in revenue. Carvana continues to expand into new markets and increase market penetration in current markets. The in-house distribution network covers 21 metropolitan areas. Its growth has increased organically by adding two markets in 2014, six in 2015 and 12 in 2016.

Use of Proceeds And Highlights From Management’s Analysis

Carvana seeks to seamlessly improve the used car-buying experience by offering all phases required, including purchasing, financing, optional purchase protection insurance, selling used cars, vehicle sourcing and acquisition, inspection and reconditioning, photography and merchandising, and logistics and fulfillment.