According to Reuters, CarGurus, the popular car browsing website has tapped investment banks for an initial public offering later this year.
The Massachusetts-based CarGurus is looking to go public in the fourth quarter of 2017 at a valuation of more than $1 billion.
CarGurus has hired bookrunners to lead the IPO, said the people, who asked not to be identified because the matter is confidential. The timing of the IPO could still change, they added.
Online news provider Axios, which first reported on the IPO plans earlier on Tuesday, said the company hired Goldman Sachs and Allen & Co to lead the offering.
CarGurus and Allen & Co could not be reached for comment. Goldman Sachs declined to comment.
Allen & Co investment banker Ian Smith sits on CarGurus' board, according to its website.CarGurus joins a growing list of private tech companies looking to go public this year following the IPO of messaging app Snapchat's owner, Snap Inc. Enterprise software firms MuleSoft Inc. and Alteryx Inc. ALYX.N have also made successful offerings in the past few weeks.
The move comes as more consumers grow comfortable with online used-car purchases. Shares of one of CarGurus' competitors, TrueCar Inc, a car-shopping service that went public in 2014, have surged 184 percent in the last 12 months.