Lemonade, a tech-driven insurance company, soars 132% in trading debut

• Lemonade, a tech-driven insurance company backed by SoftBank, soared 132% in its trading debut on Thursday.
• The company had set its IPO price at $29, representing a market valuation of $1.6 billion.
• It was valued at $2.1 billion in its 2019 funding round.
• Lemonade raised $319 million in its IPO.
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Investors turned lemons into lemonade on Thursday as they bid up shares of Lemonade, a tech-driven insurance company, more than 130% in its trading debut.

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

In late June, it priced its initial public offering at a range of $23 to $26. Lemonade later raised its IPO price and went public at $29 per share, which was also above the expected range of $26 to $28 from early Thursday morning, signaling that investors are hungry for technology companies.

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The IPO raised $319 million for the tech company and valued it at $1.6 billion. It was valued at $2.1 billion in its 2019 funding round, representing a 23% decline.

Lemonade began trading at 11:34 a.m. and opened at $50.06.

At its peak on Thursday, Lemonade stock traded up as much as 132%, at $67.46, representing a market valuation of $3.7 billion, well ahead of its 2019 funding round.

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