Does Turo have an IPO?
Dec 10, 2022 - Turo, the peer-to-peer car-sharing service has filed for its initial public offering (IPO) to be traded on NYSE. The company is about to sell $100M of stock.
- Detailed instructions how to participate in Turo (pre-IPO, offering price) see below👇
What is an IPO and how it works
IPO is a process of offering shares of a private corporation to the public in a new stock issuance. Why go public? The primary benefit of going public is easier access to capital.
To go public, a company must have a track record of growth and other favorable results and hire an investment bank (Morgan Stanley, J.P. Morgan, Allen & Co, Citigroup in Turo case) to come in and underwrite the IPO. The underwriters also performed due diligence and verified financial information and business model.
Once the paperwork done, the company sells the stock to institutional investors. When the initial block of shares has been sold, the company with underwriters' help sets an initial price and date for the stock to begin trading on a stock exchange.
Company Profile and Financial Indicators before Turo IPO
Founded in 2009, the company has previously raised $467 million from investors, including Daimler and American Express Ventures, according to data from Crunchbase. Barry Diller’s IAC is the largest shareholder since July 2019, with a stake of more than 30%.
In first nine months of 2021 the company’s operating expenses in the first nine months of the year were $124.01 million compared to $71.6 million during the same period last year. Turo also says it hit adjusted EBITDA — a modified profitability metric — of $69.8 million in the first nine months of 2021. It achieved that in spite of that $129 million net loss because of a $174.7 million change in the fair value of redeemable convertible preferred stock warrant liability.
Turo has already raised nearly $500 million in venture funding from investors including Manhattan Venture Partners, Allen & Co, Expanding Capital, IAC, Reform Ventures and others. The amount raised in the last round of investment (February 2020) was $280 million.
Turo generated net revenues of $149.9 million in 2020, up 6% from the same period in 2019, and a net loss of $97.1 million in 2020 compared to $98.6 million 2019. For the first nine months of 2021, the company generated a net revenue of $330.5 million, up 207% from the same period in 2020, and a net loss of $129.3 million compared to $51.7 million for the same period in 2020.
The younger generation increasingly sees transport not as a thing but as a service. Gradually, society is shifting from the concept of personal car ownership to some form of car sharing. Thus, the demand for car sharing continues to grow, not only among tourists, but also among local people.
Turo works by connecting car owners with short-term renters, acting as an Airbnb for cars. Its main competitor is Getaround Inc. Turo also offers short trips ranging from a few hours to days and to weeks - the service seeks to compete with traditional car rental companies as well.
The company plans to expand its fleet to 1.5 billion cars and offer customers the ability to sign up for car-sharing services anywhere in the world.
How to Buy Turo Stocks Before the IPO (Offering Price)
In the past, IPOs as highly profitable investments were available only to the privileged customers of the leading brokerage firms and it was challenging for retail investors to gain access. You couldn't buy shares paying the price set by the company and you had to wait until the shares actually start trading on the public stock market at whatever stock price supply and demand allows.
Technologies and marketplaces changed the rules of the game, now regular investors can get pre-IPO shares. To participate in Turo IPO you need to use an IPO investing app like Freedom Finance (NASDAQ: FRHC), TD Ameritrade or Fidelity. They give its customers access to IPOs and secondary offerings through their existing brokerage account. Also you can buy Turo shares when the company goes public via a trading app like eToro.
🚨 Detailed Instructions How to Participate in the Turo IPO before public trading:
Below we share the instruction how to participate in the approaching Turo IPO using Freedom Finance (Freedom24 platform). This marketplace is chosen as an example because Turo IPO is already listed there.
*** Freedom Finance services are NOT available to US citizens and residents.
- Apply for a Freedom Finance account — you need to prepare your identity document and a document confirming the address of residence (utility bill). The verification process is very fast, it will take 2 minutes to create your account.
- Deposit your account — to participate in an IPO, your account must have available funds in the amount you send IPO application for.
- 💡 Tip: It's recommended to deposit your account in advance. Often the exact IPO date is undefined until the last day. You may have a short notice for participation and account deposits also takes time for processing. Also, sometimes Freedom sends last-minute IPO offer when you have 2 hours to participate.
- Submit a request to participate in the IPO — when applications are open select Turo and click Participate in the IPO > input the amount you want to invest > Send your application. Note: Before the book closing, a request can be withdrawn. At the time of the book closing, 1 day before the start of the exchange trading, the specified amount will be blocked on the account.
- Wait for allocation — The actual number of stocks purchased during an IPO depends on supply and demand. The higher underwriter reserves the right to partial execution of collective applications. So if the demand is high you may get less than you applied for. Of course, you will only pay for the shares purchased. The rest of the funds will be returned to your account.
- Start of trading — With the beginning of the public trading on the stock exchange, the purchased shares will appear on the account and a lock-up period will start — a 93-day period of prohibition on sale. You can’t sell stocks, but you can track their current value and growth indicators in your personal member area and a trading terminal.
- Closing your trade — At the end of the 93 days lock-up period, you will be able to manage your stocks at your discretion — leave in the portfolio or sell and withdraw money or transfer the stocks to another depository/ broker in your name. This can be done in your account by clicking the ‘Sell’ button next to the name of the security. In this case, a commission of 0.5% of the amount of the sale transaction is charged.
Is investing in IPOs profitable?
Not always. The average return at the end of the lock-up period is 72%, past IPOs data.
When is the Turo IPO date?
Turo's IPO date is May 15, 2022 (ETA)
What is Turo IPO price range?
Turo IPO price range is not defined yet. We will update when the Turo IPO offering price is known – if you want to get notified please subscribe for updates here.
How to Invest in Turo after the IPO date (opening price)?
After the IPO you can buy Turo stocks via Freedom24. Or if you're from the US use a trading app like eToro on the first trading day.
In what currency Turo IPO and post-IPO shares will be traded?
The Turo IPO and stock trading currency will be USD.
If you have funds in another currency the cheapest way to convert your currency is to use the mid-market rate (that’s the one you’ll find on Google) which can be done via a fintech service like Wise. Banks may add hidden markups to their exchange rates - charging you more without your knowledge. And if they have a fee, they charge you twice. Wise never hides fees in the exchange rate.
What is the Turo (stock symbol)
The stock ticker for Turo is TURO.
Turo Registration Statement on Form S-1
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