US insurtech startup Lemonade Inc filed for an initial public offering (IPO) and yesterday evening it made its debut on the New York Stock Exchange (NYSE). It raised US$319 million in its US initial public offering (IPO).
Lemonade priced 11 million shares at US$29 per share, the company said in a statement. The indicated price range earlier on Wednesday was raised to between US$26 and US$28 per share. Lemonade had previously guided for the offering to be priced between US$23 and US$26 per share.
Lemonade’s LMND, +139.34% became 2020’s best IPO debut after the mobile-based insurance startup’s stock closed up 139% to finish at $69.41 on the New York Stock Exchange, hitting an intraday high of $70.80
Lemonade is the latest company to capitalise on the sharp recovery in US investor appetite for new stocks following the coronavirus outbreak.
On Tuesday, US business analytics firm Dun & Bradstreet Holdings Inc raised US$1.7 billion in its IPO after it sold more stock than expected and at a price above its indicated range.
The IPO values Lemonade at US$1.6 billion, SoftBank valued the fintech at around $2.1bn, current estimates put the fintech at around $3.4bn in a funding round led by Japan’s SoftBank and which included insurer Allianz SE and Alphabet Inc’s venture capital arm GV.
Once IPO closes, SoftBank is expected to own a 21.8% stake in the company, with Sequoia Capital and Aleph LP each holding a 8.3% stake, and General Catalyst Group with a 5.9% stake. Among the company’s founders, Daniel Schreiber will hold a 28.3% stake and Shai Wininger will hold a 29% stake.
Goldman Sachs, Morgan Stanley, Allen & Co and Barclays are the managing bookrunners for the offering. The company was set to list its shares on the New York Stock Exchange under the symbol “LMND”