After the initial public offering (IPO) of online used car marketplace Auto1, two new billionaires in Germany were created. The Berlin-based startup raised $1.8 billion to go public on Thursday, February 4, giving the company a market capitalization of $10.5 billion.
Founders of Auto1, Hakan Koç and Christian Bertermann, each own around 12% of the company, making them worth an estimated $1.3 billion each, based on Monday’s closing price.
The startup sold 600,000 cars in 2019, generating 3.4 billion euros ($4.1 billion) in sales. There have been more than 2 million used cars sold in 30 European countries using online auctions and algorithms to price the vehicles since 2012 when the founders first launched Auto1.
Even though Auto1 faces competitors in Germany like car listing websites Mobile.de and Autoscout24, investors see the future in the online car buying experience. The Auto1 stock jumped to €55 per share on Thursday and then fell to €50.24 on Tuesday. But, that’s still 32% above the IPO price.
Not only Koç and Bertermann got a profit from the IPO. The SoftBank Vision Fund took a 20% stake in the company in January 2018, investing 460 million euros. That makes this Japanese company the largest shareholder in the business, with 17% of stakes at the moment, worth $1.8 billion.