Lemonade Shares Fall 9% After Online Insurance Provider Announces Secondary Stock Offering
Lemonade, which is backed by SoftBank, focuses on digitizing the process of acquiring homeowners and occupants insurance coverage.
Shares of online insurance coverage service provider Lemonade dropped as much as 9% on Tuesday after the business revealed a secondary supply offering only six months after it went public.
The firm has not yet revealed the price of the shares that will be offered for sale. Lemonade likewise said it would not get earnings from the sale of shares by the “selling shareholders” in the secondary offering.
The supply closed up 14% on Monday at $183.26 a share. After Monday’s close, the firm announced it means providing 3 million shares of its common stock available for sale and the sale of over 1.5 million shares by insiders they call “selling stockholders” in an additional offering. Shares decreased in premarket trading and remained low after the market open. Shares dipped to as low as $166.