Yes, Carvana Co. sells real cars out of a vending machine. And it is about to get hundreds of millions of dollars to do more of it.
Carvana CVNA, +0.51% plans to sell 15 million shares in an initial public offering, with a targeted price range of $14 to $16. If the company prices its shares at the high end of its range, it would bring in $240 million at a valuation of $2.1 billion. The offering is expected to price Thursday.
Carvana has been approved to list on the New York Stock Exchange under the symbol “CVNA.” Wells Fargo Securities, Bank of America Merrill Lynch, Citigroup and Deutsche Bank Securities were the lead underwriters on the offering.
Here are four things to know about Carvana as its goes public.
How it works
Carvana sells used cars online, with a current inventory of 7,300 used and reconditioned vehicles. Customers pick out the cars online and then can schedule a delivery of the car or go pick it up from Carvana’s multistory, coin-operated vending machines, primarily located in Texas. In about two dozen markets, Carvana offers next-day delivery.
The service launched in January 2013, starting in Atlanta, and as of Dec. 31, 2016, had sold about 27,500 vehicles. Carvana began in 2012 as a wholly-owned subsidiary of DriveTime Automotive Group Inc., the used-car dealership chain mostly aimed at subprime borrowers that was…