Turo Inc IPO: Car-sharing firm eyeing $100M debut on NYSE

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Turo Inc IPO: Car-sharing firm eyeing $100M debut on NYSE

 Turo Inc IPO: Car-sharing firm eyeing $100M debut on NYSE
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Highlights

  • Turo Inc., a car-sharing provider, filed for an initial public offering via Form S-1 with the U.S. Securities and Exchange Commission on Monday, January 10.
  • The registration statement was filed for the listing of its common stock on the New York Stock Exchange with the ticker symbol ‘TURO’.  
  • The document does not include the terms of the offering such as price range, shares offered, etc.

Turo Inc. is a car-sharing provider. It filed for an initial public offering via Form S-1 with the U.S. Securities and Exchange Commission on Monday, January 10.

The document does not include the terms of the offering such as the number of shares on offer, underwriters, price range etc.  The registration statement has been filed for the listing of its common stock on the New York Stock Exchange with the ticker symbol ‘TURO’.  

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As per the filing, Turo and some of its largest shareholders would sell shares that would be included in the initial public offering, but the number is not yet disclosed.

Its large investors are IAC/InterActiveCorp., entities affiliated with August Capital, and Canaan IX L.P. The largest shareholders will continue to have significant influence after the IPO, the company said in the filing. 

The proposed offering is for an amount of US$100 million, but this figure may change in future.

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(Car-sharing marketplace provider Turo Inc. files for IPO)

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About Turo Inc.

Turo was founded in 2010. It is a car-sharing marketplace. The company provides a platform to private car owners (hosts) to rent out their vehicles/cars through its website and app and for renters (guests) to book any vehicle at any place they want from a community of trusted hosts. 

The company had more than 85,000 active hosts, 1.3 million active guests on its platforms, and 160,000 active vehicle listings in more than 7,500 cities as of September 30, 2021. 

The business model is beneficial for all as the guests have the option to choose from a variety of vehicles available for rent ranging from a swanky car to a rugged truck for their specific requirements. At the same time, the host can earn by utilizing their underutilized personal vehicles. 

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Financials

The company’s net revenue of US$330 million for the nine months ended September 30, 2021, more than tripled compared to the US$107 million in the nine months corresponding period in 2020. 

The company is yet to post an annual profit. It incurred a net loss of US$129.27 million or US$4.47 per share diluted for the nine months in 2021 versus a net loss of US$51.73 million or US$2.04 per share diluted in 2020.

As of September 30, 2021, its cash and equivalents were US$262.8 million, and the accumulated deficit was US$544.01 million.

The company generates revenue by taking a cut from both guests and the host.

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Bottom line:

The number of IPOs were at a record high in 2021 with more than 900 listings on US exchanges. Though Omicron has affected January IPO plans for some companies this year, things could keep pe ace, as per some experts. However, from the available and upcoming offerings, an investor must be selective after exercising due diligence in the relatively volatile market.

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