Automobile insurance startup Root Inc said on Tuesday it plans to raise as much as $604.1 million in its initial public offering on the Nasdaq, the latest in a line of insurers looking to tap the current boom in U.S. capital markets

The firm, which provides insurance to customers through mobile applications, expects its initial offering of 24.2 million shares to be priced between $22 and $25 a share, and is looking at a top-end valuation of about $6.25 billion.

Sources had told Reuters earlier this year that Root was looking at a valuation of between $5 billion and $6 billion.

Goldman Sachs, Morgan Stanley, Barclays and Wells Fargo Securities are the lead underwriters for the offering.

With the COVID-19 pandemic pushing customers to buy financial products online, Root is among the several firms trying to tap the digital market. (Reporting by Ambar Warrick in Bengaluru; Editing by Shailesh Kuber)

Topics InsurTech Tech Funding