Bankers typically recommend a price that would cause the shares to go up about 20% or so on the first day, known as a “pop.” But Carvana maximized every last dollar in its $225 million offering, at the cost of new investors.
They’re still hoping the IPO will raise their profile and bring about new customers. Carvana wants to make shopping for a car as easy as buying a book on Amazon.
“We built a website that’s very easy to navigate,” CEO and founder Ernie Garcia, told TechCrunch. “The customer response has been very strong.”
With vending machines in Texas and Tennessee, customers can buy a car without having to interface with pesky salesman. They can also order directly on the website and get free shipping if they live in one of the 21…