initial public offerings (IPOs) trading on American exchanges

Friday, June 30, 2023

Root Insurance (ROOT) : performance since 2020 IPO

It has been a long fall from grace for Root, which went public in October of 2020 with a market capitalization of over $6 billion. The IPO was seen as a big win for Root’s venture-capital backers, especially Drive Capital and Ribbit Capital.

Founded in 2015 and based in Columbus, Ohio, Root is a tech-enabled insurance provider that uses AI and data science to determine customers’ rates more quickly and streamline the claims process. In 2019, the company expanded its reach when it introduced renters insurance.

Root’s public debut came after those of other technology-powered insurance providers including rate-comparison website SelectQuote (SLQT), SoftBank-backed Lemonade (LMND) and Hippo (HIPO).

Such companies were part of a wave of consumer-facing online-insurance startups that went public during the last venture boom. They have since experienced steep selloffs in their stocks, in part because it turns out the companies tend to have higher loss ratios associated with accidents by their customers. Root has incurred net losses on an annual basis since its inception.

The once-highflying Carvana invested $126 million in Root in August of 2021, getting convertible stock and warrants. The companies began a partnership to offer insurance to customers in 2022. Declining used-car prices postpandemic have dented Carvana’s sales and profits—and the value of the agreement for Root.

Root’s Chief Revenue and Operating Officer Daniel Rosenthal resigned from the company earlier this year. Root recently fired its former Chief Financial Officer and Treasurer Rob Bateman for cause, saying only that he violated unspecified company policies.

Hall has sold a number of his previous businesses, including insurance-tech startup Salty Dot, acquired by CDK Global, and Insurance Point, acquired by Arthur J. Gallagher & Co.

Friday, June 9, 2023

Atlas Energy Solutions (AESI) began trading on the NYSE on Thur 9 Mar 23

Atlas Energy Solutions Inc. provides proppant and logistics services to the oil and natural gas industry within the Permian Basin of West Texas and New Mexico. The company was .
  • Sector(s): Energy
  • Industry: Oil & Gas Equipment & Services
  • Full Time Employees: 371
  • Founded in 2017 
  • HQ in Austin, Texas

Thursday, June 8, 2023

Fast-casual Mediterranean restaurant chain Cava aims for $2.12 billion valuation in U.S. IPO

  • Cava prices IPO at $17-$19 a share, with top end value of $2.1B;  looks to raise as much as $274M in offering
In a letter written by co-founder and CEO Brett Schulman, the company said it currently has 263 restaurants and should have 300 by the end of 2023. 

Cava Group, which operates a chain of Mediterranean fast-casual restaurants in the United States, said on Monday it is aiming for a valuation of up to $2.12 billion in its U.S. initial public offering.

The company intends to sell roughly 14.44 million shares priced between $17 and $19 apiece in the offering, aiming to raise up to $274.4 million based on the top end of the proposed range.

Although Cava’s revenue has grown at a compound annual growth rate of 52.2% since 2016, the company has been operating at a loss for several years.

Cava was founded by three friends with Greek roots — Ted Xenohristos, Ike Grigoropoulos and Dimitri Moshovitis. The group opened its first restaurant Cava Mezze in Rockville in 2006 and started selling its signature dips and spreads in local grocery stores within two years.

J.P. Morgan and Jefferies are acting as joint lead book-running managers of the offering.

The company plans to list on the New York Stock Exchange under the symbol “CAVA.”

Korean barbecue concept GEN Restaurant Group files for IPO

GEN Restaurant Group Inc., which owns the 32-unit GEN Korean BBQ House concept, has filed for an initial public offering, joining a small list of brands seeking funds in the public markets this year.

The Cerritos, Calif.-based casual-dining company, in Securities and Exchange Commission Form S-! registration documents filed May 26, did not yet set the number of shares, a share price or a timetable for the Korean barbecue concept.

In the 12 months ended March 31, the company said it had revenues of $169 million and average unit volumes of $6 million. As of May 26, it had restaurants in six states, including its home state of California as well as Arizona, Hawaii, Nevada, New York and Texas.

GEN Korean BBQ was founded in 2011 in Tustin, Calif., by Jae Chang and David Kim. Kim was the owner of Baja Fresh Mexican Grill and La Salsa Fresh Mexican Grill, which he sold to and bought back from The Wendy’s Co. over a four-year period. In 2016, Kim sold both brands to the MTY Food Group Inc., a Montreal-based restaurant operator, in a $27 million deal.

Because GEN Restaurant Group had less than $1.07 billion in revenue during its last fiscal year, it qualifies as an emerging growth company, or EGC, and has limited disclosure requirements, the company noted.

The GEN Korean BBQ House concept allows customers to cook their own food.

The company plans to list on the Nasdaq exchange under the symbol "GENK."

The sole book-running manager on the public offering is Roth Capital Partners with the Craig-Hallum Capital Group and The Benchmark Co. as co-managers.