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CarGurus shares surge 84 pct in debut

CarGurus shares surge 84 pct in debut
From Reuters - October 12, 2017

(Reuters) - Shares of CarGurus Inc (CARG.O), an online marketplace connecting buyers and sellers of new and used cars, jumped as much as 84 percent in their market debut on Thursday, giving the company a market capitalization of more than $3 billion.

The company has grown rapidly since it was set up by TripAdvisor co-founder Langley Steinert in 2006, and said in its IPO filing it had 61 million average monthly users and 5.4 million car listings in the United States as of June 30.

The Cambridge, Massachusetts-based companys IPO was priced at $16 per share, above the previously outlined $13-$15 range, and raised $150.4 million. The stock touched a high $30.19 minutes after it started on Thursday, before easing slightly to trade at $27.90.

CarGurus generates revenue from charging subscription fees to its vast network of car dealers who pay to post their inventory on the website, according to the filing. (bit.ly/2yc2O3C)

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