Lemonade Enters the Market With a Bang
Insurance company Lemonade entered the market with a bang on Thursday.
Lemonade Inc. (NYSE: LMND) entered the market with a bang on Thursday. The shares went out well above the expected price: at $50.06, after pricing its 11 million shares at $29 apiece. There is an overallotment option for an additional 1.65 million shares. At the $29 price point, the entire offering was valued up to roughly $366.85 million.
The underwriters for the offering are Goldman Sachs, Morgan Stanley, Allen, Barclays, JMP Securities, Oppenheimer, William Blair and LionTree.
Lemonade is an insurance company that is looking to leverage technology, data, artificial intelligence, contemporary design and behavioral economics. This company offers homeowners and renters insurance in the United States, as well as contents and liability insurance in Germany and the Netherlands, through its full-stack insurance carriers.
The company’s goal is to replace brokers and bureaucracy with bots and machine learning, aiming for zero paperwork and instant everything. Lemonade gives excess premiums to nonprofits selected by its community during its annual Giveback. Lemonade is currently available for most of the United States, Germany and the Netherlands.
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Lemonade said it intends to use the net proceeds from this offering for general corporate purposes, including working capital, operating expenses and capital expenditures.
Shares of Lemonade traded up more than 88% at $54.64 on Thursday, in a range of $49.02 to $54.74 on the day thus far. More than 5 million shares had moved as of noon Eastern.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
