Lemonade IPO: 13 Things for Investors to Know About LMND Stock

The Lemonade (NYSE:LMND) initial public offering (IPO) is underway and investors might want to keep an eye on the American insurance company.

Lemonade IPO: 13 Things for Investors to Know About LMND Stock

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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.

Article printed from InvestorPlace Media, https://investorplace.com/2020/07/lemonade-ipo-details/.

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