Stock of insurance tech company Lemonade opened at $50.06 on its first day of trading, nearly 73 percent above its IPO price of $29 per share.
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The company raised $319 million with its IPO by selling 11 million shares at $29 apiece, giving the company a valuation of around $1.6 billion, excluding underwriters’ options. Lemonade was trading at $54 at 11:55 a.m. ET on Thursday.
Lemonade initially set its IPO price range between $23 and $26, before raising it to between $26 and $28.
Lemonade uses artificial intelligence and “behavioral economics” to set rates for the homes and renters it insures. It is licensed as a property and casualty insurance carrier, and is among a handful of startups trying to disrupt the insurance space. The New York-based startup is t trading on the New York Stock Exchange under the ticker symbol “LMND.”
The company reported revenue of $67.3 million in 2019, 200 percent more the $22.5 million in it reported for 2018. Its losses also increased from $52.9 million in 2018 to $108.5 million in 2019. There’s more on Lemonade’s financials here.
Lemonade is backed by investors including SoftBank, Allianz, Aleph and Sequoia Capital Israel, according to Crunchbase data.
This story will be updated later today after the market closes.
Illustration: Li-Anne Dias
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