Few people have never even heard of YayYo Inc. (NASDAQ: YAYO). The company calls itself a “leading provider of vehicles to the rideshare industry.” Its subsidiary Rideshare Car Rentals, is said to bridge the gap between rideshare drivers who need a quality vehicle and the rideshare companies that depend on attracting and keeping drivers with quality vehicles. Now YayYo has formally become a public company.
YayYo priced a small initial public offering of 2,625,000 common shares at an offering price of $4.00 per share. The company raised $10.5 million in gross proceeds for the offering, prior to the offering’s expenses, and YayYo issued its underwriters a 45-day overallotment option to purchase up to 393,750 additional shares of common stock at the public offering price.
As of October 31, 2019, YayYo had 26,802,976 shares of common stock issued and outstanding. The two joint bookrunners for the offering listed were Aegis Capital and WestPark Capital.
The company is headquartered in Beverly Hills, California, and it intends to use the proceeds from the IPO to acquire passenger vehicles made available for rent and for general corporate purposes. It earmarked $5 million for the purchase of passenger vehicles available for rent, $2.4 million for the repayment of notes, $750,000 for sales and marketing and another $750,000 for working capital and the general corporate purposes category.
The company’s press release about this tiny IPO said:
YayYo uniquely supports drivers in both the higher and lower economic categories with innovative policies and programs. YayYo seeks to become the preeminent provider of rental vehicles to drivers in the ever-expanding ridesharing economy.
YayYo shares opened at $4.05 and quickly traded down to $3.50 as of 10:30 Eastern Time on only 237,000 shares trading hands after the offering was open for trading.