The pandemic gave us lemons, but the stock market decided to make some Lemonade.
Lemonade, the SoftBank-backed upstart that wants to disrupt the stodgy insurance industry, had a big trading debut on Wall Street on Thursday. It priced its initial offering at $29 per share — and by the closing bell, its stock price had risen to more than $69, up ~140%.
The company raised almost $320m in its IPO. It all adds up to a big win for SoftBank, which contributed $420m of the $480m that Lemonade had raised already.
This guide from Marker breaks down the essentials of Lemonade’s business (which has yet to post a profit), if you’re in the mood for another glass.
It’s not the only one winning accolades…
…because investors gave Accolade, a health-tech startup, a round of applause, too.
Accolade works with companies to help employees navigate health-care benefits. Its client base includes American Airlines, Comcast, Lowe’s, and State Farm. The company sold shares at $22 each, above the expected range of $19 to $21. Accolade’s stock ended the day at more than $29, up 35%.
The takeaway from Thursday, which extended a recent run of successful Wall Street launches: The IPO market is sweet, bitter as our economic prospects may be.
