Driven Brands IPO: 13 Things to Know asDRVN Stock Starts Trading

As we wrap up the week, Driven Brands (NASDAQ:DRVN) is just starting to drive off into its life in the public markets. In other words, DRVN stock started trading today following the Driven Brands IPO. So what do you need to know now?

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For unfamiliar investors, Driven Brands is a company all about automotive care. Through its various brands like Meineke and Maaco, it has provided internal and external car care for more than 200 years. Now, the company is taking its next steps, launching its journey on the Nasdaq Exchange today.

With that in mind, here is what you need to know about the Driven Brands IPO and DRVN stock:

  1. The company announced its initial public offering plans at the end of December.
  2. Today, it started trading after offering 31.8 million shares at $22 each.
  3. This means that the Driven Brands IPO raised $700 million.
  4. Importantly, this was above the IPO price range of $17-$20.
  5. However, the Driven Brands IPO included 6.2 million shares less than initially planned.
  6. Based on the $22 share price, Driven Brands has a market capitalization of $3.6 billion.
  7. Investors should note though that shares are now trading hands for $27.
  8. This means DRVN stock is up 25% on the day.
  9. One reason for this is just the recent interest in initial public offerings like Affirm (NASDAQ:AFRM) and Playtika (NASDAQ:PLTK).
  10. However, Driven Brands also stands out thanks to its reputation and long history.
  11. As William White wrote in December, the company has 4,100 locations and more than 6,000 employees.
  12. At those locations its brands offer things like car washes, maintenance, collision and glass services, and platform services.
  13. Additionally, many investors see DRVN stock as a Covid-19 turnaround play.
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The Driven Brands IPO and DRVN Stock

So what else do potential DRVN stock investors need to know about the Driven Brands IPO?

Beyond the history and reputation, there is always a lot for companies to prove when they are new to the public markets. Especially with the pandemic still weighing on the United States, investors will truly have to see what DRVN stock looks like in a post-pandemic world. For right now though, some are betting that the company will benefit from that reality. That is because right now, and particularly earlier in the pandemic, people were not driving as much.

Without normal levels of driving, cars did not need their normal levels of maintenance. Even though many auto shops received essential designations, stay-at-home orders and the work-from-home trends were enough to hurt business. That means after the pandemic, there is reason to believe demand will rebound meaningfully. When it does, consumers will be driving their cars to Meineke and Maaco shops for washes and regular maintenance.

If that narrative plays out, DRVN stock looks like an interesting bet. That means investors should surely keep the Driven Brands IPO on their radar right now.

On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Sarah Smith is a Web Content Producer with InvestorPlace.com. 

View more information: https://investorplace.com/2021/01/driven-brands-ipo-13-things-to-know-as-auto-care-play-drvn-stock-starts-trading/

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