Lemonade, a tech-driven insurance company, soars 132% in trading debut

Daniel Fowler
July 3, 2020

SoftBank will own a 21.8 per cent stake in the company upon the IPO, the filing shows. Lemonade is the latest in the list of U.S. IPOs in recent weeks after months of inactivity due to the Coronavirus pandemic that has so far infected more than 10 million people worldwide and caused over half a million deaths. Lemonade had previously guided for the offering to be priced between $23 and $26 per share.

Shares of the company opened at US$50.06 and rose as high as US$53.96 in NY trading Thursday. Shares in automative retailer Vroom Inc. have more than doubled since it went public last month. It reported a $36.5 million net loss in the three months ended March compared to a net loss of $21.6 million during the same period previous year. Its sales, however, registered a more than 100% growth in the said quarter on a year over year basis. Advertisement The IPO raised $319 million in funds for the tech company, and valued it at $1.6 billion. At the time, the insurer was valued at £1.68 billion.

Lemonade raised $US319 million in its IPO debut. The company is also backed by other prominent names like General Catalyst and Sequoia Capital Israel.

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Goldman Sachs, Morgan Stanley, and Allen & Company are acting as the managing bookrunners for the IPO. Citadel Securities served as the designated market maker.

With market futures showing a strong start today, in part due to a good jobs report, Lemonade may be off to a good start. It says it provides insurance policies to homeowners and renters in as little as 90 seconds and claim payments in three minutes.

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