TrueCar Raises $70 Million and Lists on Nasdaq
GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)--
Capital, Inc. (the “Company”) (Nasdaq: KIPO), a closed-end fund that
has elected to be regulated as a business development company under the
Investment Company Act of 1940, announced that TrueCar, Inc., a
portfolio company, completed the pricing of its initial public offering
of 7,775,000 shares of common stock at a price to the public of $9.00
per share on May 15, 2014. The shares began trading on the Nasdaq Global
Select Market under the ticker symbol "TRUE" on May 16, 2014.
Goldman, Sachs & Co., J.P. Morgan Securities LLC and RBC Capital
Markets, LLC acted as joint book-running managers for the offering.
Cowen & Company, LLC and JMP Securities, LLC acted as co-managers for
Founded in 2005 and based in Santa Monica, California, TrueCar empowers
car buyers by giving them transparent insight into what others actually
paid, upfront pricing info, a guaranteed savings certificate, and a
connection to a trusted TrueCar Certified Dealer to seamlessly complete
the car purchase.
On September 26, 2011, Keating Capital purchased 377,358 shares of
TrueCar’s common stock for $7.95 per share (after giving effect for a
two-for-three reverse stock split before the IPO), for a total
investment of $3 million. Based on the $9.00 IPO price, Keating
Capital’s common stock would have a value of approximately $3.4 million,
representing 1.13x our initial investment cost. As of March 31, 2014,
Keating Capital’s investment in TrueCar had a fair value of $3.7
million, or a price of $9.86 per split-adjusted share.
“TrueCar priced their IPO in a market environment that has been choppy
for emerging growth companies and new issuers alike,” stated Timothy J.
Keating, CEO of Keating Capital. “Despite these market conditions, we
believe that TrueCar has a very strong management team and a compelling
value proposition for both consumers and auto dealers. We remain
confident that the public markets will appropriately recognize TrueCar
as it executes its business plan and achieves key operating milestones
over time,” added Mr. Keating.
About Keating Capital, Inc.
Keating Capital (www.keatingcapital.com)
is a closed-end fund (regulated as a business development company under
the Investment Company Act of 1940) that specializes in making pre-IPO
investments in emerging growth companies that are committed to and
capable of becoming public. Keating Capital provides investors with the
ability to participate in a publicly traded fund that allows its
stockholders to share in the potential value accretion that Keating
Capital believes typically occurs once a company transforms from private
to public status. Keating Capital’s shares are listed on Nasdaq under
the ticker symbol “KIPO.”
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This press release may contain statements of a forward-looking nature
relating to future events.These forward-looking statements are
subject to the inherent uncertainties in predicting future results and
conditions.These statements reflect Keating Capital’s current
beliefs, and a number of important factors could cause actual results to
differ materially from those expressed in this press release, including
the factors set forth in “Risk Factors” set forth in Keating Capital’s
Form 10-K and Form 10-Q filed with the Securities and Exchange
Commission (“SEC”), and subsequent filings with the SEC.Please
refer to Keating Capital’s SEC filings for a more detailed discussion of
the risks and uncertainties associated with its business, including but
not limited to the risks and uncertainties associated with investing in
micro- and small-cap companies.Except as required by the federal
securities laws, Keating Capital undertakes no obligation to revise or
update any forward-looking statements, whether as a result of new
information, future events or otherwise.The reference to Keating
Capital’s website has been provided as a convenience, and the
information contained on such website is not incorporated by reference
into this press release.
Keating Capital, Inc.
Investor Relations Director
Source: Keating Capital, Inc.