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Highlights
- E Automotive is looking to make its public debut on the Toronto Stock Exchange (TSX).
- Setting the E Automotive IPO terms, the company priced the shares between C$ 19 to C$ 23 per share.
- The underwriting responsibility for the E Automotive IPO is on Canaccord Genuity, National Bank Financial and CIBC World Markets.
The Toronto-based online car seller E Automotive Inc. announced the terms for its initial public offering. E Automotive is looking to C$ 125 million in gross proceeds and reportedly wants to hit a market capitalization of C$ 1.02 billion at issuance.
The fast-growing online vehicle auction platform for dealers wants to list its shares on the Toronto Stock Exchange (TSX) and has set the price range between C$ 19 to C$ 23 per share.
The underwriting responsibility for the IPO is on Canaccord Genuity, National Bank Financial, and CIBC World Markets. In Canada, a lot of companies have gone public this year, and on that note, we will further explore E Automotive:
All you need to know about E Automotive IPO
Intercap Equity Inc. has the controlling power of E Automotive as it owns 26.2 million or about two-thirds of the company's pre-IPO equity. The Toronto-based merchant bank has the right to appoint a majority of E Automotive's directors as long as it owns more than 50 per cent of the equity.
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E Automotive has expanded in the past year by acquiring three companies and shifted to e-commerce operations during the COVID-19 pandemic. Notably, the company could benefit from increased demand for used vehicles as the world faces a shortage of chips.
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The company is also looking to increase its presence in the United States through more acquisitions.
Bottom line
E Automotive claims to be a market leader for vehicle auctions in Canada, and over 115,0001 vehicles worth US$ 1.3 billion have transacted over the last 12 months. In addition, around 1,000 unique dealers use the company's subscription retail solutions and maintain 14 OEM certifications.
Over the last three years, the car seller's multi-faceted solution drove the revenue and resulted in a compound annual growth rate (CAGR) of 97 per cent.
In the first half of 2021, E Automotive generated revenue of US$ 37.2 million, and the total gross value of transactions was US$ 949 million.
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