The second IPO in which we are taking part –– ACV Auctions Inc | Primor Investment Group

The second IPO in which we are taking part –– ACV Auctions Inc.
You can take part in this IPO till 22/03/2021 5 pm UTC
*not an investment advice

ACV Auctions Inc. –– a full-service, coast-to-coast, wholesale automotive marketplace. ACV helps car dealers manage inventory and value vehicles by providing accurate and transparent information, as well as process payments and transfer ownership.

Ticker –– ACVA
IPO listing date 24/03/2021
IPO size $2.9 billion
Listing price range $18 – $20
Underwriters: Goldman Sachs, J.P. Morgan, Citigroup, BofA Securities, Jefferies, Canaccord Genuity, Guggenheim Securities, JMP Securities

Highlights

- In 2020, 391K cars were sold through ACV, with an overall turnover of $3.30B, which amounted to $208 million in earnings in 2020 (an impressive 95% increase comparing to 2019)
- The US auto market is a large and complex industry, with approximately 78 million units sold in 2019, generating approximately $1.7 trillion in sales between retail and wholesale markets.
- ACV values the potential market in the US at $10.70B, while it also has plans to expand to Canada by 2022.
- Talking losses, in 2020 their net loss $41 million and adjusted EBITDA of US $30.8 million, compared to a net loss of $77.2 million and adjusted EBITDA of $76.4 million in 2019
- Its investors include large and experienced members such as Bessemer Venture Partners and SoftBank.
- The company has stable resources in cash flow. This means that the company doesn’t need money in the short term and the money raised through the IPO will be invested in the US bonds.

Downsides

- Recent rapid growth doesn’t guarantee future results
- The ACV business is very sensitive to changes in the retail car prices, which varies a lot.
- ACV operates in a highly competitive industry and pressure from existing and new companies can negatively impact business and performance.

https://www.acvauctions.com/