SANTA MONICA, Calif. (AP) -- TrueCar, which provides localized information on new car costs, plans to raise up to $125 million from an initial public offering of its common stock.
Through its website, TrueCar provides consumers with information on what others have actually paid for specific makes and models of cars sold in their area. It also gives estimated prices for the make and model, where available. TrueCar currently concentrates mostly on new cars.
The Santa Monica, Calif., company said in its regulatory filing that it has a network of more than 7,000 TrueCar certified dealers and that consumers may take a guaranteed savings certificate to these dealers to apply toward the purchase of the specified car.
TrueCar -- which had been called Zag.com -- said that it helps its certified dealers by attracting educated consumers in their market, which it believes helps the dealers sell more cars.
The company did not disclose in its filing with the Securities and Exchange Commission how many shares it expects in the IPO or the projected price range.
TrueCar is expected to offer an undetermined amount of shares. A selling stockholder is also expected to offer shares. The company won't receive any proceeds from shares sold by the selling stockholder.
TrueCar said that it anticipates using the offering's net proceeds mostly for general corporate purposes, including working capital, operating expenses and capital expenditures. It may also use part of the net proceeds to acquire or invest in complementary technologies, solutions, products, services, businesses or other assets.
In 2013 TrueCar reported about $134 million in revenue, up from approximately $79.9 million a year earlier.
TrueCar is expected to list on the Nasdaq under the "TRUE" ticker symbol.
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