Lemonade Inc logo

LMND - Lemonade Inc News Story

$60.67 -2.1  -3.3%

Last Trade - 12/08/20

Sector
Financials
Size
Large Cap
Market Cap £2.56bn
Enterprise Value £2.92bn
Revenue £61.2m
Position in Universe 1446th / 6403

UPDATE 1-SoftBank-backed Lemonade opens strong in U.S. market debut

Thu 2nd July, 2020 4:58pm
(Adds expert comment, background, details on money raised,
investors)
    By Bharath ManjeshR
    July 2 (Reuters) - Shares of SoftBank-backed insurance
startup Lemonade Inc  LMND.N  surged 73% in their market debut
on Thursday, capitalizing on the rebound in U.S. investor demand
for new listings following the coronavirus outbreak. 
     The company's shares opened at $50.06 on the New York Stock
Exchange, compared with their initial public offering (IPO)
price of $29. The opening price values the company at $2.75
billion.
    Lemonade on Wednesday raised $319 million after pricing its
offering above an already elevated range. The company was
looking to sell its shares between $26 and $28 apiece, and had
originally targeted $23-$26 per share.
    The company said it has digitized the entire insurance
process, replacing brokers and paperwork with algorithms,
helping it provide policies to homeowners and renters in as
little as 90 seconds and claim payments in three minutes.
    Lemonade, which started operations in late 2016, is part of
a fast-growing fintech sub-sector called "insurtech", short for
insurance technology, that uses artificial intelligence and big
data to disrupt existing business models, maximize efficiency
and mitigate insurance risk. (https://reut.rs/2NPtU9A)
    "This company is a disruptor in the insurance arena," said
Jeff Zell, senior research analyst and partner at IPO tracking
firm IPO Boutique. "The valuation of Lemonade must be viewed, in
our opinion, through the lens of extensive growth in the
future."
    The company's valuation at the opening price is well over
the $2.1 billion it was valued at last year, after it raised
$300 million in a funding round led by Japan's SoftBank Group
Corp  9984.T  and which included insurer Allianz SE  ALVG.DE 
and Alphabet Inc's  GOOGL.O  venture capital arm, GV.
    SoftBank owns a 27.3% stake in Lemonade. 
    Goldman Sachs, Morgan Stanley, Allen & Co and Barclays
served as lead underwriters for the offering.

 (Reporting by Bharath Manjesh in Bengaluru; Editing by
Ramakrishnan M.)
 ((Bharath.ManjeshR@thomsonreuters.com;  outside U.S. +91 80
6749 2703;))
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