TrueCar started strong out of the gate on Friday, closing up more than 11 percent above its $9 initial public offering price.
The stock last traded at $10.06 on the Nasdaq.
The Santa Monica, Calif.-based company, which provides research and no-haggle pricing guarantees for people trying to buy cars, also gave its underwriters — Goldman Sachs and JPMorgan Chase among them — an option to purchase nearly 1.2 million additional shares of the company.
TrueCar is paid when auto dealers close a deal with a customer who comes through its site with a pre-arranged price. Recently, the company hired John Krafcik, the former chief executive of Hyundai Motor America, to be president of the company.
Most of its revenue comes from fees its network of 8,000 dealers pay when a referral turns into a sale.
Initially the site was able to give shoppers guaranteed prices from affiliated dealers. But Honda told dealers that they couldn’t do that if the guarantee resulted in advertising cars for less than the invoice price. Post wires