Lemonade Inc., the online home insurance provider assisted by Softbank, secures $319 million in its U.S. initial public offering.
The company will sell 11 million shares at $29 apiece, Lemonade said in a filing, confirming an earlier Bloomberg News report. It was marketing 11 million shares at $26 to $28 each after boosting the range from $23 to $26, according to filings with the U.S. Securities and Exchange Commission.
At $29, Lemonade would have a market value of $1.6 billion, based on the number of shares outstanding listed on its IPO filings.
Softbank led a $300 million funding round in Lemonade last year, valuing the company at $2.1 billion at the time. Softbank will own a 21.8% stake in the company upon the IPO, the filing shows.
Lemonade has yet to turn profitable since its inception in 2015, it said in its prospectus. It reported a $36.5 million net loss in the three months ended March compared to a net loss of $21.6 million during the same period last year. Its sales have more than doubled in that period.
The company allows customers to buy insurance policies on a mobile app after answering several questions. It also pledges to donate the leftover funds, after expenses, to a charity in order to discourage fraudulent claims.
While the company is headquartered in New York, it has roots in Israel and it has 123 full-time employees there, its filing showed.