CarGurus revved up on first day of trading

CarGurus

CarGurus

In its initial offering, the company sold 9.4 million shares at $16 each, and expects to use the proceeds to invest in technology and further expansion.

The company's online automotive marketplace connects buyers and sellers of new and used cars using proprietary technology, search algorithms and data analytics, the company says.

Steinert, who was a co-founder of TripAdvisor, continues to control a majority of CarGurus' voting shares. Steinert, who also co-founded TripAdvisor, said CarGurus wants to do the same thing for auto dealerships that TripAdvisor did for hotels: Increase transparency.

IPO research firm IPOboutique.com said the CarGurus IPO was multiple times oversubscribed. IBD also focuses on the best-performing IPOs of the past three years in its IPO Leaders column.

The company, founded by Langley Steinert in 2006, has over 5.4 million vehicle listings and about 61 million average monthly users in the U.S.as of June 30, becoming the most visited online automotive marketplace, according to a regulatory filing.

The company reported a 70% jump in total revenue to $143.3m in the six months ended June 30, while net income soared more than sixteen-fold to $8.6m. In addition to the US market, the company operates online marketplaces in Canada, the United Kingdom, and Germany.