Root stock opens below IPO price, then rises above it

Root Inc. 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…

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