rtmark
LearnBonds.com

Lemonade completes $319m IPO

US insurance startup Lemonade , backed by SoftBank, successfully raised $319m after launching an initial public offering (IPO) of 11 million shares in the US stock market.

The company’s shares were initially priced between $23 and $26 per share but ended up at $29 as a result of increased demand on Wednesday, as positive momentum in the IPO market continues with investors drawn to new issues, especially from tech businesses.

Based on the price of this IPO, Lemonade would have a market capitalization of around $1.6bn, which is $500m less than the $2.1bn valuation it achieved last June during a previous round of funding led by Japanese conglomerate SoftBank, the company’s largest shareholder and one of its most important backers. The firm is led by co-founder and chief executive Daniel Schreiber (pictured).

The successful listing of the New York-based online insurer comes only a couple of days after business analytics firm Dun & Bradstreet was able to place approximately $1.7bn in new shares from an upsized IPO that was initially priced at $19 per share but ended up locking a price of $22 per share as a result of higher-than-expected demand from investors.

IPOs have been gaining positive momentum recently, as tech stocks emerged as financial strongholds during the worst days of the pandemic. Lockdown measures contributed to this jump in valuations, as people and businesses relied on websites and cloud-based video apps to communicate, purchase goods, and entertain themselves.

Lemonade, now listed as LMND, has possibly picked the best moment to list its shares, as some of the momentum may have spilled over into its share sale, despite being a fairly small firm in a crowded insurance market filled with heavyweights.

Founded in 2015, Lemonade provides home and renters’ insurance policies for US clients along with other forms of insurance in Germany and Netherlands, relying on a web-based and mobile app to issue policies and pay for claims significantly faster than traditional insurers. US home and renters’ insurance are worth approximately $100bn and $4bn by data group IBIS.

The New York-based company claims that it only keeps a fixed fee from the insurance premiums it collects, which is how they manage to pay for claims so fast, while they distribute the remaining unclaimed underwriting profit to charities picked by policy holders during an annual event hosted by the firm.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

Rating

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Alejandro Arrieche

Alejandro is a financial writer with 7 years of experience in financial management and financial analysis. He writes technical content about economics, finance, investments, and real estate and have also assisted financial businesses in building their digital marketing strategy. His favorite topics are value investing and financial analysis.