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. 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. [ Fox Business ]