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Investor Alert

Oct. 28, 2020, 12:13 p.m. EDT

Root stock opens below IPO price, then rises above it

Root Inc. (NAS:ROOT) picked a bad day for the stock market to go public, as shares of the Ohio-based auto insurer opened 3.7% below the initial public offering price of $27. The stock's first trade was at $26.00 at 12:05 p.m. Eastern for 2.9 million shares. The opening looked promising late Tuesday, as the IPO was upsized, and priced above the expected range of between $22 and $25 a share. The company raised $654.7 million in the IPO, and selling shareholders sold $69.7 million worth of their holdings. Root's stock has since rallied since the open, to trade 3.2% above the IPO price. The company went public on a day that the Renaissance IPO ETF (PSE:IPO) dropped 3.1% and the Dow Jones Industrial Average (DOW:DJIA) shed 682 points, or 2.5%.

Link to MarketWatch's Slice.