Shares of online insurance provider Lemonade fell as much as 9% on Tuesday after the company announced a secondary stock offering just six months after it went public.
Lemonade, which is backed by SoftBank, focuses on digitizing the process of obtaining homeowners and renters insurance.
The stock closed up 14% on Monday at $183.26 a share. After Monday’s close, the company announced it intends to offer 3 million shares of its common stock for sale and the sale of over 1.5 million shares by insiders they call “selling stockholders” in a secondary offering. Shares dropped in premarket trading and remained low after the market open. Shares dipped to as low as $166.
The company has not yet disclosed the price of the shares that will be offered for sale. Lemonade also said it will not receive proceeds from the sale of shares by the “selling stockholders” in the secondary offering.