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- Lemonade, a tech-driven insurance company backed by Softbank, soared 132% in its trading debut on Thursday.
- The company 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 debut.
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Investors turned lemons into lemonade on Thursday, as they bid up shares of Lemonade more than 130% in its trading debut.
Lemonade is a tech-driven insurance company that is focused on digitizing the process of consumers obtaining different types of insurance.
The company is backed by Softbank and originally priced its initial public offering at a trading range of $23 to $26 in late June. Lemonade raised its IPO price and went public at $29 per share, which was above the expected $26 to $28 range from earlier Thursday morning, signaling investors are hungry for technology companies.
The IPO raised $319 million in funds 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 a price of $50.06.
At its peak on Thursday, Lemonade stock traded up as much as 132% to $67.46, representing a market valuation of $3.7 billion, well ahead of its 2019 funding round.
