Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

A highly collaborative investment professional and research analyst with 10+ years of international experience in equity research, treasury operations, and trading positions across multiple asset classes at leading multinational banks Citibank and Morgan Stanley, UHNWI-backed family office and European independent equity research firm. A respectable background in equity capital markets, corporate treasury, investment banking operations, equity research analysis and portfolio management.

K Car (Korea's Carvana?): Offering Details, Pricing Structure, & Valuation Issues

Algosun Global

Equity Bottom-Up

<p>In August, <a href="https://www.smartkarma.com/entities/root-inc" target="_blank" data-smartkarma-citation="entities:29692:1" rel="noopener">Root Inc (ROOT US)</a> announced the expansion of partnership with <a href="https://www.smartkarma.com/entities/carvana-co" target="_blank" data-smartkarma-citation="entities:26471:1" rel="noopener">Carvana Co (CVNA US)</a> , the leading e-commerce platform for buying and selling used cars. Root is partnering exclusively to develop and offer an innovative and integrated auto insurance solution for Carvana’s online car buying platform. In our view, this is a great opportunity for Root Insurance to expand customer base at lower costs and get access to a growing channel of prospective Carvana’s customers. Insurtech unicorn had ~383K policyholders as of quarter ended Jun-21 while Carvana sold ~244K vehicles in 2020 and ~200K vehicles in the first half of 2021. Carvana has a market cap of ~$62 billion and will invest ~$126 million of capital in Root. Convertible preferred stock will be issued and sold to Carvana with an initial liquidation preference equal to the purchase price that will be convertible at a price of $9.00/share into ~14 million Root shares of Class A common stock. According to form 8-K, Root will issue 8 tranches of warrants, which may provide Carvana with opportunity to purchase ~129 million newly issued Root shares of Class A common stock, what translates into ~30% post-transaction stake on a fully diluted basis.</p>

In August, Root Inc (ROOT US) announced the expansion of partnership with Carvana Co (CVNA US) , the leading e-commerce platform for buying and selling used cars. Root is partnering exclusively to develop and offer an innovative and integrated auto insurance solution for Carvana’s online car buying platform. In our view, this is a great opportunity for Root Insurance to expand customer base at lower costs and get access to a growing channel of prospective Carvana’s customers. Insurtech unicorn had ~383K policyholders as of quarter ended Jun-21 while Carvana sold ~244K vehicles in 2020 and ~200K vehicles in the first half of 2021. Carvana has a market cap of ~$62 billion and will invest ~$126 million of capital in Root. Convertible preferred stock will be issued and sold to Carvana with an initial liquidation preference equal to the purchase price that will be convertible at a price of $9.00/share into ~14 million Root shares of Class A common stock. According to form 8-K, Root will issue 8 tranches of warrants, which may provide Carvana with opportunity to purchase ~129 million newly issued Root shares of Class A common stock, what translates into ~30% post-transaction stake on a fully diluted basis.

New Exclusive Partnership With Carvana. A Turnaround Story?

Root /OH

New Exclusive Partnership With Carvana. A Turnaround Story?