Fox Business Flash top headlines for October 26
Fox Business Flash top headlines are here. Check out what’s clicking on FoxBusiness.com.
Automobile insurance startup Root Inc sold shares in its initial public offering (IPO) on Tuesday at $27 apiece, above its target range, to raise $663.7 million, according to two people familiar with the matter.
Continue Reading Below
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The IPO values Root, which has $200 million in debt, at $6.7 billion. The company had set an initial target price range of $22-$25 per share for a sale of almost 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.
SNOWFLAKE PRICES IPO AT $120 A SHARE
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.
ANT GROUP, BIGGEST IPO EVER, PLANS TO RAISE $34.5B
Shares in Root are due to begin trading on the Nasdaq on Wednesday under the symbol "ROOT."
CLICK HERE TO READ MORE ON FOX BUSINESS
Goldman Sachs, Morgan Stanley, Barclays and Wells Fargo Securities are the lead underwriters for the offering.
(Reporting by Chibuike Oguh in New York; Editing by Tom Hogue and Lincoln Feast.)
Source: Read Full Article