Elite Express Raises $15.2 Million in IPO, Global Shares Remain Flat Amid Ukraine Talks

Elite Express has priced its initial public offering (IPO) at $15.2 million. Other notable events in the finance world include the Dow ending higher after UnitedHealth gains, despite other indexes slipping due to uncertainty around rate cuts. Additionally, several blank check companies have filed for IPOs, including Talon Capital Corp and Cantor Equity Partners V.

UnitedHealth Group's stock experienced a significant rebound on Friday, posting its sharpest gain in five years. The surge was driven by Warren Buffett's Berkshire Hathaway revealing a $1.6 billion stake in the embattled health insurer [1]. The stock surged 12%, adding roughly 209 points to the Dow Jones Industrial Average at the market open. It closed up 9.3% at $296.64, marking a sharp turnaround for a company whose shares had fallen nearly 50% year-to-date before the disclosure.

The investment, disclosed in a Thursday filing with the U.S. Securities and Exchange Commission, saw Berkshire owning 5.04 million UnitedHealth shares as of June 30. Hedge funds including David Tepper's Appaloosa Management, Lone Pine Capital, and Two Sigma Investments also reported buying into the stock. Buffett's move follows a pattern of placing large bets on companies under pressure, such as his investment in Goldman Sachs during the 2008 financial crisis and Occidental Petroleum in 2019 [1].

Kevin Gade, chief operating officer at UnitedHealth investor Bahl & Gaynor, noted that Buffett's purchase is a psychological reassurance to many investors who had seen UnitedHealth as "untouchable" given the stock's turbulence over the past few months. UnitedHealth has faced several challenges, including a Justice Department investigation into its Medicare billing, a cyberattack affecting over 192 million Americans, and the murder of its insurance division chief [1].

The insurer also pulled its annual earnings guidance in May and issued a 2025 outlook of at least $16 a share in adjusted earnings, well short of Wall Street's reduced estimate of $20.91. Shares now trade at about 15.8 times forward earnings, below their five-year average of 19 [1].

Analysts believe Berkshire's investment may establish a near-term trading floor for the managed-care sector. George Hill, a Deutsche Bank health care analyst, called it "a big vote of confidence" that could serve as "a rallying point for other investors that the space is safe to invest in again" [1]. Morningstar analyst Julie Utterback noted that while "UnitedHealth still faces elevated uncertainty, it is good to see that this renowned investment firm also believes the market is discounting assumptions that are too pessimistic for the long term" [1].

The ripple effects were visible across the industry, with shares of Centene, Humana, and Molina Healthcare rising between 2% and 4% on Friday. Berkshire also disclosed new positions in Nucor, Allegion, and Lamar Advertising [1].

In other financial news, the Dow ended higher after UnitedHealth's gains, despite other indexes slipping due to uncertainty around rate cuts. Several blank check companies have filed for IPOs, including Talon Capital Corp and Cantor Equity Partners V [3].

References:
[1] https://www.btimesonline.com/articles/175240/20250815/unitedhealth-stock-soars-12-as-buffett-1point6-billion-stake-sparks-broad-market-rally.htm
[2] https://stocktwits.com/news-articles/markets/equity/spac-king-strikes-after-3-year-hiatus-chamath-palihapitiya-files-for-250-m-blank-check-ipo-can-the-move-spur-deal-activity/chsg3e1RdXv
[3] https://www.marketscreener.com/news/blank-check-company-talon-capital-corp-files-for-ipo-of-up-to-225-million-ce7c51ded080f32d