Shares of Vroom landed on the Nasdaq exchange Tuesday, June 9, and got off to a speedy start. Now, the rapidly growing but unprofitable online used-vehicle retailer is looking to use money it raised to go after a large slice of a fragmented market dominated by traditional retailers.
Vroom priced its initial public offering of 22,250,000 shares at $22 per share, raising about $468 million. Its stock rose 118 percent on its first day of trading to close at $47.90.
Speaking with Automotive News as the stock was being listed under the VRM ticker symbol, CFO Dave Jones said the company thinks investors have an appetite for e-commerce businesses because so many consumers prefer to shop online.
"I think like with a lot of e-commerce companies, we have what both buyers and sellers of vehicles are looking for, which is price, selection and customer experience," he said.