AI insurtech Lemonade looks to raise $466m from new share sale

Insurtech Lemonade is looking to raise approximately $466.1 million from the sale of shares of its common stock in an underwritten public offering.

The insurance company powered by artificial intelligence and behavioral economics intends to offer 3,000,000 shares of its common stock.

The net proceeds from the sale are based on an assumed public offering price of $160.74 per share, after deducting underwriting discounts and commissions and estimated offering expenses, the company said in a US Securities and Exchange Commission filing.

Certain selling stockholders of Lemonade also intend to offer 1,524,314 shares of the company's common stock for sale in the offering. However, Lemonade said it will not receive any proceeds from the sale of shares by the selling stockholders in the 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 insurtech stated that it intends to use its net proceeds from the primary offering for general corporate purposes, including working capital, operating expenses and capital expenditures.

Lemonade said it may also use a portion of the net proceeds to acquire or invest in businesses, products, services, or technologies, but noted that the company currently does not have agreements or commitments for any material acquisitions or investments.

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.

Goldman Sachs & Co, Morgan Stanley & Co., Allen & Company and Barclays Capital are serving as joint active bookrunners for the offering.