Investors place 18.4m shares in Auto Trader at 415p each

More than 18.4m shares in online car sales firm Auto Trader Group were placed today at 415p each one by shareholders Crystal A Holdco and Crystal Holdco B, raising them total gross proceeds of about £76.4m.

The sellers, who are reducing their stakes to nil, are indirectly wholly owned by Apax Europe VII. Auto Trader would not receive any proceeds from the placing.

Yesterday, Auto Trader motored to a £155m pre-tax profit in its first full year as a listed company, up from £10.9m a year earlier. Revenues firmed 10% to £281.6m.

The company proposed final dividend of 1p per share, totalling 1.5p per share for the year and said a rolling programme of share buy-backs would start imminently, with the majority of surplus cash after dividends being returned to shareholders.

"The new financial year has started well," Auto Trader said in a statement.

"Based upon having the largest consumer audience, healthy relationships with our retailers, a robust car buying market and a modest cost base decrease, the board is confident of further growth in the coming year," it said.

Numis has raised its target price on Auto Trader to 495p from 439p and reiterated a 'buy' rating on the stock after its results.