Lemonade Eyes Sale of 3 Million Shares in Secondary Offering

By | January 15, 2021

Digital insurer Lemonade has announced plans to sell 3 million shares of common stock to raise money for “general corporate purposes.”

The New York-based insurtech could raise as much as $808 million, according to its regulatory filing announcing the stock sale. Lemonade said its stock price as of Jan. 8 was $160.74 per share, though it traded above $179 per share late afternoon on Jan. 13.

Additionally, selling stockholders will be offering more than 1.5 million shares of common stock.

In addition to the offering, some Lemonade stockholders will be selling more than 1.5 million shares of stock. Lemonade also plans to grant the underwriters 30-day options to snatch up an additional 678,647 shares of its common stock.

Lemonade launched the first major insurtech IPO in July 2020, raising more than $300 million.

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Latest Comments

  • January 18, 2021 at 8:31 pm
    Observor says:
    It is interesting that companies offering new technologies such as predictive modeling and electric vehicles are selling at prices far exceeding current earning or even projec... read more
  • January 18, 2021 at 1:19 pm
    Mr. Solvent says:
    They're very upfront. They pay $800 to acquire a policy that yields $459 in average premium. They cede 75% of this premium to reinsurance.
  • January 18, 2021 at 1:18 pm
    Mr. Solvent says:
    All reinsured with OUTRAGEOUS cost of acquisition. Costs them $800 to acquire a $459 policy that they cede all but $114.75 of. How long can can something like this continue?

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