UPDATED: 5/5/14 11:11 am ET -- adds IPO details, background
(Reuters) -- TrueCar Inc. may be valued at about $1 billion if its initial public offering is priced at the top end of the expected range.
The company said today its IPO was expected to be priced at $12-$14 per share, raising as much as $108.9 million from the 7.78 million shares on offer. After the offering, the company would have about 71 million common shares outstanding.
In advance of its IPO, TrueCar last week named former Hyundai Motor America CEO John Krafcik its president. He joined the TrueCar board as a director on April 3.
TrueCar.com allows visitors to view the average selling price of a new car, its sticker price, the site’s estimates of a good price and the price that dealers in its network are offering.
The Web site operates through a network of 7,000 car dealers and generates revenue from advertising and dealer subscriptions.
TrueCar, which has received a $30 million investment from Microsoft Corp co-founder Paul Allen's Vulcan Capital, is headed by Scott Painter.
Painter served as an early adviser to Tesla Motors Inc.
TrueCar's other investors include venture capital firm Upfront Ventures, billionaire Jeff Skoll's Capricorn Investment Group and insurer United Services Automobile Association.
TrueCar intends to list its common stock on the Nasdaq under the symbol TRUE.
The net loss attributable to common stockholders of TrueCar rose about 10 percent to $9.92 million for the three months ended March, from a year earlier. Revenue rose about 75 percent to $43.9 million.
The company's competitors include online automotive sites such as AutoTrader.com, eBay Motors, Edmunds.com, KBB.com, Autobytel.com and Cars.com, as well as sites operated by General Motors and Ford.
Goldman Sachs & Co, J.P. Morgan and RBC Capital Markets are the lead underwriters for the IPO.