By Yantoultra Ngui, Fanny Potkin and Jun Yuan Yong

SINGAPORE, Aug 6 (Reuters) - Singapore-based Carro,

Southeast Asia's largest used-car online marketplace, is

preparing for a U.S. initial public offering as early as 2026

that could raise up to $500 million, according to sources

familiar with the matter.

The company is aiming for a valuation of more than $3

billion, according to the sources, who could not be named

discussing confidential information.

If successful, Carro's listing would be the largest

Southeast Asian IPO in the U.S. since SEA's $989.3

million listing in 2017 and the third biggest Southeast Asian

high-tech IPO in the United States, according to LSEG.

It would also be the first major automotive tech and

artificial intelligence or AI-driven commerce startup from

Singapore to go public in the United States.

Carro is on track to deliver $100 million in annual earnings

before interest, taxes, depreciation, and amortisation by its

fiscal year ending March 2026, one of the sources said.

The IPO size is still under discussion and may change

depending on market conditions, the sources added.

Carro did not immediately respond to an email request

seeking comment on Wednesday.

Founded in 2015, Carro operates a digital platform that

enables consumers and dealers to buy and sell vehicles, while

also offering insurance, financing and after-sales services.

Besides Singapore, it has a presence in markets across the

Asia-Pacific region including Malaysia, Indonesia, Thailand,

Japan, Taiwan and Hong Kong, its websites show.

With over 4,500 employees across Asia-Pacific, Carro has

raised more than $1 billion in debt and equity from investors

including Temasek, SoftBank and several other

sovereign funds, according to its websites.

A successful listing could pave the way for other regional

unicorns such as Carsome, Traveloka and Xendit to follow suit.

Beyond Southeast Asia, a growing number of Chinese companies are

also eyeing U.S. listings, drawn by the potential for higher

valuations despite ongoing geopolitical tensions.