Root announces launch of initial public offering
Ohio-based auto insurer Root Insurance announced the launch of its initial public offering of 24,164,515 shares of its Class A common stock. The offering consists of 22,000,000 shares of Class A common stock offered by Root and 2,164,515 shares of Class A common stock to be sold by an existing stockholder. Root will not receive any proceeds from the sale of the shares by the selling stockholder.
The underwriters will have a 30-day option to purchase an additional 3,624,677 shares of Class A common stock from Root at the initial public offering price, less underwriting discounts and commissions. The initial public offering price is currently expected to be between $22.00 and $25.00 per share. Root intends to list its Class A common stock on the Nasdaq Stock Market under the ticker symbol ROOT.
Goldman Sachs & Co. LLC, Morgan Stanley, Barclays, and Wells Fargo Securities will act as lead bookrunners for the proposed offering. Deutsche Bank Securities, Truist Securities, Citigroup, Credit Suisse, Evercore ISI, and UBS Investment Bank will act as additional book runners, and Cantor Fitzgerald & Co., JMP Securities, Siebert Williams Shank and Huntington Capital Markets will act as co-managers of the proposed offering.
In addition to the shares of Class A common stock to be sold in the initial public offering, Root announced that funds affiliated with Dragoneer Investment Group, LLC and Silver Lake have each agreed to purchase $250.0 million of shares of Root’s Class A common stock, for an aggregate of up to $500.0 million, in private placements, in each case at a price per share equal to the initial public offering price. The sale of Class A common stock in the private placements will be contingent upon, and would close immediately subsequent to, the closing of the initial public offering.