AI insurtech Lemonade initiates potential $286m IPO

AI-powered insurtech company Lemonade has commenced the previously announced  initial public offering (IPO) of its common stock, which is expected to raise up to $286 million.

Lemonade is offering 11 million shares of its common stock at a price between $23 and $26 per share.

The startup backed by Japanese conglomerate SoftBank and several other VC investors sells renters and homeowners insurance in the US, and contents and liability insurance in Germany and the Netherlands, through its full-stack insurance carriers.

SoftBank led a $300 million funding round in Lemonade last year, valuing the company at approximately $2.1 billion.

Lemonade expects to grant the underwriters a 30-day option to purchase up to an additional 1,650,000 shares of its common stock at the IPO price. The shares are expected to trade on the New York Stock Exchange under the ticker symbol 'LMND'.

Goldman Sachs & Co., Morgan Stanley and Allen & Company are acting as the managing bookrunners for the offering.

Barclays is acting as a bookrunner. JMP Securities, Oppenheimer & Co., William Blair and LionTree are acting as co-managers for the offering.