Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Car insurance startup Root raises $724.4 million in IPO

10/28/2020 | 01:22am EST

NEW YORK (Reuters) - Automobile insurance startup Root Inc sold shares in its initial public offering (IPO) on Tuesday at $27 apiece, above its target range, to raise $724.4 million, the company said.

Root, which has $200 million in debt, sold 26.8 million shares in its IPO. The company had set an initial target price range of $22-$25 per share for a sale of around 24.6 million shares.

Root's IPO is bigger than those of other technology-powered insurance providers that have gone public this year. In May, insurance comparison website SelectQuote Inc raised $360 million in a listing that valued the firm at $3.25 billion, while SoftBank Group-backed insurance provider Lemonade Inc was valued at $1.6 billion in an IPO that raised $319 million in July.

Founded in 2015, Root began by offering car insurance and now uses a smartphone-administered driving test and an algorithm to offer estimates, according to its website. Tiger Global Management, a $36 billion hedge fund and venture fund manager, is an investor in Root.

In 2019, Root earned $290.2 million in revenue with a net loss of $282.4 million. In the first six months of 2020, the company's revenue was $245.4 million with a net loss of $144.5 million.

Shares in Root are due to begin trading on the Nasdaq on Wednesday under the symbol "ROOT."

Goldman Sachs, Morgan Stanley, Barclays and Wells Fargo Securities are the lead underwriters for the offering.

(Reporting by Chibuike Oguh in New York, additional reporting by Bhargav Acharya in Bengaluru; Editing by Tom Hogue, Lincoln Feast and Krishna Chandra Eluri)

By Chibuike Oguh


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
BARCLAYS PLC -1.13% 139.5 Delayed Quote.-22.34%
MORGAN STANLEY 0.57% 63.84 Delayed Quote.24.88%
NASDAQ COMP. 0.92% 12205.846315 Delayed Quote.34.79%
SELECTQUOTE, INC. 2.73% 21.85 Delayed Quote.0.00%
SOFTBANK GROUP CORP. 3.19% 7089 End-of-day quote.49.05%
THE GOLDMAN SACHS GROUP, INC. -0.48% 235.4 Delayed Quote.2.87%
WELLS FARGO & COMPANY -0.45% 28.46 Delayed Quote.-47.10%
Latest news "Economy & Forex"
09:04aBoE's Haldane sees inflation risks as economies bounce back
RE
09:02aBoE's Haldane sees inflation risks as economies bounce back
RE
08:31aANDY HALDANE : UCL Economics Conference 2020 “Central Bank independence” (to be published at 13:30)
PU
07:55aLUIS DE GUINDOS : Interview with Helsingin Sanomat
PU
07:55aYVES MERSCH : Interview with Le Monde
PU
07:51aBrexit negotiations restart in person as clock ticks down
RE
07:13aThai protesters move to Bangkok suburbs
RE
05:53aEU's Barnier arrives for post-Brexit trade talks
RE
05:14aNorway cuts gas exports as plant shuts over strike
RE
05:03aUK testing error wrongly tells 1,300 people they have coronavirus
RE
Latest news "Economy & Forex"