The Lemonade (NYSE:LMND) initial public offering (IPO) is underway and investors might want to keep an eye on the American insurance company.
Source: MIND AND I / Shutterstock.com
Here’s what potential investors need to know about the Lemonade IPO.
- The company is listing its shares on the New York Stock Exchange under the “LMND” ticker.
- The IPO starts today and will last until July 7.
- It has the company offering its shares for a price of $29 each.
- The IPO includes 11 million shares of LMND stock.
- There’s also a 30-day option for underwriters to purchase an additional 1.65 million shares.
- That means Lemonade could bring in as much as $366.85 million from the IPO.
- Goldman Sachs & Co. LLC, Morgan Stanley and Allen & Company LLC are acting as the managing book-runners for the IPO.
- Lemonade is an interesting insurance company in that it doesn’t make its money off of excess premiums.
- Instead, it collects a flat fee with every payment and donates leftover funds to various organizations each year.
- The idea here is that this keeps the company from fighting against insurance holders that need complete coverage due to unfortunate circumstances.
- This also allows it to turn around claims faster since it doesn’t gain anything by denying customers their claims.
- The company currently operates in 23 states as well as Washington D.C.
- It also has plans to expand its business to more states in the future.
LMND stock was up 119.9% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
