SoftBank-backed Lemonade soars 73% in U.S. market debut

Marco Green
July 3, 2020

Insurance startup Lemonade Inc. on Wednesday raised the expected pricing range of its initial public offering of 11 million shares to $26 to $28 from a previous range of $23 to $26.

Softbank has a 21.8% stake in Lemonade that is now valued at about £2.40 billion.

According to Lemonade, the shares are expected to trade on the New York Stock Exchange under the ticker symbol LMND.

The company, which is backed by Japanese conglomerate SoftBank, announced in early June that it had filed a registration statement with the US Securities and Exchange Commission (SEC) to apply for listing on the New York Stock Exchange.

The IPO values Lemonade at $1.6 billion.

Lemonade has yet to turn profitable since its inception in 2015, it said in its prospectus. 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 a year ago.

Very last calendar year, SoftBank led a $300 million funding spherical in Lemonade, which has still to convert a earnings. The company is also backed by other prominent names like General Catalyst and Sequoia Capital Israel.

Lemonade's offering was led by Barclays plc, Morgan Stanley, Allen & Co., and Goldman Sachs Group.

Lemonade, started in late 2016, says it has digitised the entire insurance process, replacing brokers and paperwork with algorithms. It says it provides insurance policies to homeowners and renters in as little as 90 seconds and claim payments in three minutes.

Other reports by Click Lancashire

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