SoftBank Group Corp-backed insurance startup Lemonade Inc aims to raise up to $286 million in its U.S. initial public offering (IPO), at a $1.43 billion market capitalization, or 30% less than what the company was valued at last year.
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The company intends to sell 11 million shares in the IPO and has set a target range of $23-$26 per share, according to a regulatory filing , Lemonade was valued at $2.1 billion last year after it raised $300 million in a funding round led by Japan’s SoftBank that also included insurer Allianz SE, Alphabet Inc’s venture capital arm GV and General Catalyst.
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As per Reuter, the listing comes amid a strong appetite for new stock offerings, especially those with an online-focused business against the backdrop of the pandemic. Online used car seller Vroom Inc earlier this month raised $467.5 million in its IPO and its shares more than doubled in value on debut.
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Lemonade is part of a growing number of young companies looking to shake up the insurance sector through a better use of technology. The company, started in late-2016, says it has digitized the entire insurance process, replacing brokers and paperwork with algorithms and providing policies in as little as 90 seconds and claim payments in three minutes.
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Lemonade intends to list its shares on the New York Stock Exchange under the symbol “LMND”.
