Stock of insurance tech company Lemonade opened at $50.06 on its first day of trading, nearly 73 percent above its IPO price of $29 per share.
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The company raised $319 million with its IPO by selling 11 million shares at $29 apiece, giving the company a valuation of around $1.6 billion, excluding underwriters’ options. Lemonade was trading at $54 at 11:55 a.m. ET on Thursday.
Lemonade initially set its IPO price range between $23 and $26, before raising it to between $26 and $28.
Lemonade uses artificial intelligence and “behavioral economics” to set rates for the homes and renters it insures. It is licensed as a property and casualty insurance carrier, and is among a handful of startups trying to disrupt the insurance space. The New York-based startup is t trading on the New York Stock Exchange under the ticker symbol “LMND.”
The company reported revenue of $67.3 million in 2019, 200 percent more the $22.5 million in it reported for 2018. Its losses also increased from $52.9 million in 2018 to $108.5 million in 2019. There’s more on Lemonade’s financials here.
This story will be updated later today after the market closes.
Illustration: Li-Anne Dias