Lemonade Sets Price Range For Upcoming IPO

Insurance tech company Lemonade set a price range of between $23 and $26 per share for its upcoming IPO, according to an updated regulatory filing.

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The company, based in New York, is looking to raise between $253 million and $286 million through its IPO by selling 11 million shares, according to the S-1/A filed with the U.S. Securities and Exchange Commission on Thursday. As an insurance company, Lemonade uses artificial intelligence and “behavioral economics” to calculate rates. The company is licensed as a property and casualty insurance carrier.

With nearly 55 million shares outstanding (excluding underwriters’ options), the company would be valued between $1.26 billion and $1.43 billion, quite a bit lower than its last private valuation. The company was last valued at $2 billion after its $300 million Series D in April 2019.

Lemonade, like most startups going public these days, isn’t profitable. The company reported $67.3 million in revenue in 2019, up 200 percent from $22.5 million in 2018. But its losses also climbed 105 percent to $108.5 million in 2019 from $52.9 million in 2018. We covered Lemonade’s S-1 when it was filed earlier this month, and you can read more about its financials here.

The company, which was founded in 2015, is backed by investors including SoftBank, Sequoia Capital Israel, Allianz and Aleph. It has at least $480 million in total funding, according to Crunchbase data.

Goldman Sachs, Morgan Stanley and Barclays are among the underwriters for the IPO.

Lemonade has applied to list on the New York Stock Exchange under the ticker symbol “LMND.” Its IPO is scheduled for Thursday, July 2, according to IPO Scoop.

Illustration: Li-Anne Dias

Correction: This story was updated to reflect that Lemonade will have nearly 55 million shares outstanding, not 55,000. We regret the error.

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