Vroom has filed with the SEC to raise $300 million in an initial public offering.

In an amended registration statement, the used online car seller said it expects to sell 18.75 million shares of common stock at a midpoint price of $16 per share for an enterprise value of $1.6 billion.

“The market is placing a high value on next-generation companies that can thrive in a post-COVID economy,” Matthew Kennedy, a senior IPO market strategist with Renaissance Capital, said. “Vroom falls into that category. Tech-focused used car platforms like Vroom proved more resilient. Consumers are increasingly interested in shopping online for cars, and the COVID-19 outbreak (has) accelerated that trend.”

Vroom had $1.2 billion in revenue for the year-ended December 31, up nearly 40% from the year prior. It reported $375.8 million in total revenue for the three months ended March 31, up nearly 60% from the year before.

Vroom reported negative cashflow of $208 million for the year ended March 31. It also reported $169.8 million in cash and $262.2 million in total liabilities as of that date.

The company has raised at least $900 million since 2012 but has yet to turn a profit. Its investors include L. Catterton, General Catalyst, T. Rowe Price Funds, Auto Holdings, and Cascade Investment.

Vroom said it plans to use proceeds from the offering for general corporate purposes. “We intend to continue to invest in growth to scale our company responsibly and drive towards profitability,” it said in its filing.

Vroom said it would be treated as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act.

The deal is expected to price June 10 after the market closes.

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