Automobile insurance startup Root Inc. shares opened at $26, down from the initial public offering (IPO) price of $27, a 4% drop as the company made a NASDAQ debut on Wednesday, according to Reuters. The share price fall marked a weak open after the company raised about $724 million in IPO.
- Root’s IPO is bigger than other technology-powered insurance firms that have listed this year, above $360 million raised by SelectQuote Inc. in May.
- Root sold 26.8 million shares in the IPO and has $200 million in debt.
- The IPO issue of $27 is above the set price range of $22-$25.
- In the first half of 2020, Root earned $245.4 million in revenues, with a $144.5 million loss.
Root Inc. stock is declining. ROOT: NASDAQ is down 0.83%