Turo Peers Burn Out as Car-Sharing IPO Looms
Jan 26, 2022
Weak trading by peers is complicating an initial public offering from car-sharing firm Turo Inc. Turo, which filed for an IPO earlier this month, is nearing public markets during a crossroads for stocks exposed to the so-called gig economy. Uber Technologies Inc. and Airbnb Inc., for example, have underperformed during the wild market swings that started the year, a trade that resumed on Tuesday.
Despite the negative tone, potentially big returns for early investors could help this deal press forward, according to analysts at special situations research firm The Edge Consulting Group. “On preliminary numbers, IAC/InterActiveCorp. could stand to make around $500 million from Turo’s IPO, nearly doubling its FY19 investment in the peer-to-peer car sharing business,” The Edge Consulting Group’s Chief Executive Officer Jim Osman said in an interview.