Image: Lemonade

Lemonade Inc. (NYSE: LMND(pending)) raised $319 million in its initial public offering on Wednesday.

The online insurance company sold 11 million shares priced at $29 each. Underwriters for the IPO will have an option to purchase an additional 1.65 million shares in a 30-day window.

Goldman Sachs Group Inc. (GS), Morgan Stanley (MS), and Allen & Company LLC are the managing book-runners for the offering.

Lemonade priced the shares above its indicated range of $26 to $28.

The IPO values the New York-based company at $1.6 billion, significantly lower than the $2.1 billion pre-money valuation it received as part of a $300 million funding round led by SoftBank Group Corp. (SFTBY) last year.

Lemonade, founded in 2015, mainly targets first-time insurance buyers who are more comfortable with an entirely-digitized process.

The company's shares will start trading at the New York Stock Exchange on Thursday under the ticker "LMND."