British online used car seller Cazoo on Monday announced its initial public offering in New York, at a valuation of $ 7 billion, using a SPAC, a listed vehicle which is on the rise in the markets .
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Cazoo’s choice to list on Wall Street is a snub for the City, even as the British government plans to relax stock market rules to attract more young companies. The company explains in a statement that it will merge with Ajax I, a listed vehicle which entered the market with the aim of making future acquisitions.
The status of “SPAC»
These SPACs make it easier for a company to enter the market than a traditional IPO. More and more companies are using them in the United States and in continental Europe but London has fallen behind, so much so that the British Minister of Finance intends to propose measures to reduce the gap with other financial centers. A SPAC, or “Special Purpose Acquisition Company», Is a company without commercial activity whose goal is to raise funds by entering a stock exchange.
Return to Cazoo
Cazoo is a very young company, founded in 2018, and experiencing rapid growth, with a turnover expected to approach $ 1 billion in 2021. It employs around 1,800 people in the United Kingdom, Germany, France and in Portugal. The operation will enable it to raise $ 1.6 billion to finance its development in Europe. Cazoo ensures that all the cars offered on its site are repaired with the aim of delivering them or making them available for recovery within 72 hours. Alex Chesterman, founder and CEO, says he wants “transforming the way people buy cars in Europe», A sector where online purchases are still limited.
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