SoftBank-backed Lemonade raises $319 million in IPO

Insurance startup Lemonade Inc, which is backed by SoftBank Group Corp said it raised US$319 million in its US initial open public offering.

Lemonade may be the latest company to capitalize on the sharp restoration in US investor cravings for new shares following coronavirus outbreak. On Tuesday, US business analytics firm Dun & Bradstreet Holdings Inc brought up $1.7 billion in its IPO after it sold more inventory than expected and at a price above its indicated range.

Lemonade priced 11 million shares in $29 per share, the business said in a statement. The indicated price range previously on Wednesday grew up to between $26 and $28 per talk about. Lemonade possessed previously guided for the supplying to be priced between $23 and $26 per share.

The IPO values Lemonade at $1.6 billion. That's significantly less than the $2.1 billion it was valued at last time, after it raised $300 million in a financing circular led by Japan’s SoftBank and which included insurer Allianz SE and Alphabet Inc’s capital raising arm GV. Lemonade possesses pursued breakneck income growth at the trouble of widening losses.

SoftBank owns a 27.3 percent stake in Lemonade.

Lemonade, started in late 2016, says it has digitized the whole insurance process, replacing agents and paperwork with algorithms. It says it provides insurance policies to homeowners and renters in less than 90 seconds and lay claim payments in three minutes.

The business will list its shares on the New York Stock Exchange beneath the symbol “LMND” on Thursday.

Goldman Sachs, Morgan Stanley, Allen & Co and Barclays will be the managing bookrunners for the giving.