Lemonade shares fall 9% after online insurance provider announces secondary stock offering

Daniel Schreiber - cofounder and CEO of Lemonade - speaks onstage during Day 1 of TechCrunch Disrupt SF 2018 at Moscone Center on September 5, 2018 in San Francisco, California.
Lemonade CEO and cofounder Daniel Schreiber
  • Shares of Lemonade fell as much as 9% on Tuesday as the online insurance company announced a secondary stock offering just six months after its IPO.
  • Lemonade intends to offer 3 million shares of its common stock for sale and the sale of over 1.5 million shares by insiders they call "selling stockholders" in a secondary offering.
  • Shares dipped to as low as $166 on Tuesday. 
  • Watch Lemonade trade live here

Shares of online insurance provider Lemonade fell as much as 9% on Tuesday after the company announced a secondary stock offering just six months after it went public.

Lemonade, which is backed by SoftBank, focuses on digitizing the process of obtaining homeowners and renters insurance.

The stock closed up 14% on Monday at $183.26 a share. After Monday's close, the company announced it intends to offer 3 million shares of its common stock for sale and the sale of over 1.5 million shares by insiders they call "selling stockholders" in a secondary offering. Shares dropped in premarket trading and remained low after the market open. Shares dipped to as low as $166. 

Read more: An ETF provider whose specialty funds have smashed the market breaks down how to capitalize on the red-hot SPAC craze - and shares 4 to watch in 2021

The company has not yet disclosed the price of the shares that will be offered for sale. Lemonade also said it will not receive proceeds from the sale of shares by the "selling stockholders" in the secondary offering. 

Lemonade soared 132% in its first day of trading in July 2020 after it went public at $29 per share. The company is now up an additional 144% from the closing price of its IPO day.



Read the original article on Business Insider

Comments are closed.