Insurtech start-up Lemonade intends to offer 3,000,000 shares of its common stock for sale in an underwritten public offering, resulting in net proceeds of approximately $466.1 million.
The net proceeds from the offering is based an assumed public offering price of $160.74 per share, after deducting underwriting discounts and commissions and offering expenses.
Certain selling stockholders of Lemonade also intend to offer 1,524,314 shares of the company’s common stock for sale in the offering, although Lemonade will not receive any proceeds from this secondary offering.
Additionally, Lemonade intends to grant the underwriters 30-day options to purchase up to an additional 678,647 shares of Lemonade’s common stock.
The insurer states that it intends to use the net proceeds from the offering for general corporate purposes, including working capital, operating expenses and capital expenditures.
“Additionally, we may use a portion of the net proceeds to acquire or invest in businesses, products, services, or technologies. However, currently we do not have agreements or commitments for any material acquisitions or investments,” says Lemonade.
Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Allen & Company LLC and Barclays Capital Inc. are all serving as joint active book runners.
This announcement comes after Lemonade reached more than one million customers in 2020, 1,500 days after its initial launch.
