NEW YORK (AP) — TrueCar's stock is surging in its first day as a publicly traded company.
Shares of the provider of localized information on new car costs jumped $1.56, or 17.3 percent, to $10.56 in Friday trading.
TrueCar Inc.— which had been called Zag.com Inc. — priced the initial public offering of approximately 7.8 million shares at $9 per share, below the projected range of $12 to $14 per share.
The Santa Monica, California-based company raised about $70.2 million in the offering.
TrueCar's market valuation is approximately $639 million. The company anticipated about 71 million outstanding shares after the offering, according to a recent regulatory filing.
The underwriters have a 30-day option to buy up to an additional 1.2 million shares.
Through its website, TrueCar provides consumers with information on what others have actually paid for specific makes and models of cars sold in their area. It also gives estimated prices for the make and model, where available. TrueCar currently concentrates mostly on new cars.
The company has said in its regulatory filings that it has a network of more than 7,000 TrueCar certified dealers and that consumers may take a guaranteed savings certificate to these dealers to apply toward the purchase of the specified car.
TrueCar anticipates using the offering's net proceeds mostly for general corporate purposes, including working capital, operating expenses and capital expenditures. It may also use part of the net proceeds to acquire or invest in complementary technologies, solutions, products, services, businesses or other assets.
TrueCar is listed on the Nasdaq under the "TRUE" ticker symbol.
The offering is expected to close on Wednesday.