Roark Capital-Backed Driven Brands Climbs After $700 Million IPO
Henry Paulson, U.S. treasury secretary, speaks at a news conference to promote tax credits for lower-income earners in Washington, D.C., U.S. (Photographer: Dennis Brack/Bloomberg News)

Roark Capital-Backed Driven Brands Climbs After $700 Million IPO

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Driven Brands Holdings Inc., an automotive services company backed by Roark Capital, rose 21% in its U.S. trading debut after raising $700 million in an initial public offering.

The company’s shares opened at $28 in New York trading Friday and closed at $26.69, giving Driven Brands a market value of about $4.5 billion. The company sold almost 32 million shares on Thursday for $22 apiece after marketing 38 million for $17 to $20.

Roark Capital, which acquired Driven Brands in 2015, is keeping about a 70% stake in the company after the share sale, according to filings with the U.S. Securities and Exchange Commission. It’s one of the first major sponsor-backed listings of 2021, data compiled by Bloomberg shows.

Driven Brands, based in Charlotte, North Carolina, operates car maintenance service Meineke, car wash chain ICWG and paint and repair businesses. It plans to use the IPO proceeds to pay down $722 million in senior credit facilities assumed in an acquisition, according to the filings.

Morgan Stanley, Bank of America Corp., Goldman Sachs Group Inc., JPMorgan Chase & Co. and Barclays Plc led the offering. Driven Brands is trading on the Nasdaq Global Select Market under the symbol DRVN.

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