Used-auto retailer Carvana LLC, which allows customers to pick up cars they buy on the internet from vending machine-like towers, has tapped investment banks for an initial public offering, according to people familiar with the matter.
The move comes as more consumers become comfortable with online used-car purchases. TrueCar Inc for example, a car-shopping service that matches buyers with dealers online, has seen its shares rise 150 percent in the last 12 months.
Carvana has hired Wells Fargo & Co and Bank of America Corp to lead its IPO, the people said this week. The Phoenix, Arizona-based company hopes to go public in the first half of the year at a valuation of well over $2 billion, the people added.
Read more about Carvana’s coming IPO.