In coordination with a secondary offering of TrueCar’s shares, seven investors plan to sell 7.5 million of the company’s shares at an unannounced upcoming date, worth $118.9 million at the close of the stock market on Monday.
The online car-pricing website’s secondary offering will be used to raise funds for general operations and is worth about $15.9 million. The insider’s stock sale represents about 36.3 percent of the firm’s common stock.
Since August 2015, the month founder and Chief Executive Scott Painter resigned after a series of long-running lawsuits with auto dealerships, TrueCar’s stock price has risen more than 230 percent. The company’s revenue rose to $277 million in 2016, up 34.3 percent from about $207 million in 2015.
The seven investors selling off shares in TrueCar are United Services Automobile Association, Santa Monica’s Upfront Ventures, Pacific Sequoia Holdings, Jeff Skoll’s Capricorn & Skoll, Paul Allen’s Vulcan Capital Growth Equity, Nevada Capital Partners, and Peppy Capital Partners. No insider is selling more than 25 percent of their stake in TrueCar.
Technology reporter Garrett Reim can be reached at email@example.com. Follow him on Twitter @garrettreim for the latest in L.A. tech news.
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