Stock Alert: Carvana Up 8% ; Prices Stock Offering

(RTTNews) - Shares of Carvana Co. (CVNA), a leading e-commerce platform for buying and selling used cars, are up more than 8% Monday morning.

The company today said it has priced the direct offering of 13.3 million shares of Class A Common Stock at $45.00, amounting gross proceeds to $600 million. The offering included investments of $25 million each from Ernest Garcia III, the company's founder and CEO, and Ernest Garcia II, the company's controlling shareholder. The offering is expected to close on or about April 1, 2020.

Last week, Carvana had announced that Ally Financial, its six year long partner, has agreed to increase its current loan purchase program to $2 billion. As per the deal, Ally will provide up to $2.0 billion, which is double the company's existing available limit, for the purchase of finance receivables over the next 12 months.This had driven the stock up nearly 70% in two days.

CVNA is currently trading at $53.11. It has traded in the range of $22.16- $115.23 in the last 52-weeks.