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April 18 (UPI) – The social media company Pinterest started its first day of trading at $ 23.75, up 25% from its initial public offering of $ 19 per share.
This decision pushed Pinterest's market capitalization above $ 12 billion, while the company was valued at $ 10 billion if it stayed with the IPO at $ 19.
In addition, the stock continued to grow more than 28%, reaching a market capitalization of $ 13 billion.
The company had raised $ 1.4 billion for its IPO.
The last time Pinterest had a valuation in 2017, private financing set it at $ 12.3 billion.
A valuation lower than 12 billion could have generated losses for some investors, but the company's road show is well ahead of its beginnings, attracting investors, which has led to a rise in the share price. .
The digital signage board debuted Thursday on the New York Stock Exchange as part of one of this year's largest IPOs. It follows the early days of Lyft earlier this month.
Pinterest, which traded under the ticker symbol PINS, initially set a price range of $ 15 to $ 17 per share, but investors have reported a strong demand for equities, which has pushed up prices.
Atlantic Equities analyst James Cordwell said Pinterest was probably worth $ 16 billion, a value comparable to Snap Inc. Pinterests is a platform for "visual discovery" where people are looking for inspiration for food, clothing combinations, holidays, weddings or decoration.
"The ability to monetize this audience is much greater," Cordwell said. "When you're at Snap, you communicate with friends or you waste time, when you go to Pinterest, your intentions to buy are high: you plan something, you're looking for a product." It's exactly what advertisers are looking for. "
Founded in 2010, Pinterest has 265 million monthly users, but experts say growth has slowed in recent years. The participation of the founder Ben Silbermann amounts to 1 billion dollars at the price of the IPO. Various venture capital firms have similar issues.
One of the most anticipated IPOs of the year is that of the carpool giant, Uber, next month. Experts say this should be valued at more than $ 100 billion. Zoom Video debuted on Wednesday and began commercialization on Thursday. Other technology IPOs this year could include Slack Technologies Inc., Postmates Inc., Palantir Technologies and Airbnb.
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