[ad_1]
Lyft began its first day as a public company Friday at a former car dealership in Los Angeles, where its co-founders rang a bell to open the Nasdaq trade to more than 3,000 kilometers.
Shares of the US control company will begin trading later on Friday after its IPO, which netted $ 2.3 billion Thursday, valuing the company at $ 24 billion on a fully diluted basis.
It was the largest US technology IPO since Snap in 2017, sparking a wave of listings from Silicon Valley's most-favored private companies, including Pinterest, Slack, Airbnb, and the biggest unicorn of all, Uber.
Lyft beat his rival at the market, but Uber is right behind. The company is preparing to unveil its own IPO next month, according to people close to the case. Investors and bankers estimate that this fund could be valued at more than 100 billion US dollars in one of the largest public offerings in the history of US companies.
Lyft co-founders Logan Green and John Zimmer said the decision to publicize the company was motivated by internal preparation, not by Wall Street's enthusiasm.
"We thought the right time was when we could go to the public without changing the way we run the company on a daily basis," said Zimmer, chairman of Lyft, Financial Times in an interview. "It turned out that it was a good time on the market to do it."
He added that this response confirmed Lyft's long-term goal of replacing pbadenger cars with a shared, and eventually self-contained, fleet.
"Investors were thrilled to be part of this story as they saw a mbadive transfer of owner-owned vehicles to transportation as a service," he said. "We have seen this happen in entertainment with Netflix and Spotify. They agree with us that there has never been a market as important as this one. "
Investors flocked to Lyft despite its heavy losses since its inception in 2012, as a spin-off of Green's first venture and Mr Zimmer, a Facebook app for long distance carpooling.
During its roadshow marketing over the last two weeks, the company has presented its rapid growth in its revenue and market share, as well as the expansion of its global market, as a key investment opportunity .
Lyft and Uber have clashed in the United States since their debut, resulting in losses. Lyft took advantage when Uber was shaken by a series of scandals in 2017, bringing its market share to around 30% today, according to the Second Measure research group. However, it continues to spend a lot, its losses increased by 32% to $ 911 million last year, while its revenues doubled to $ 2.16 billion.
Lyft sold 32.5 million shares at $ 72 each, which is at the top of its target range. According to a person familiar with the subject, the offer was "oversubscribed", which led the company to increase both its price range and the number of shares for sale. JPMorgan Chase was at the top of the list with Credit Suisse and Jefferies.
advisable
Instead of going to the Nasdaq in New York, Lyft highlighted the opportunity in Los Angeles, the home town of CEO Green, who said the city's notorious traffic had convinced him that the car was a "failing model" and interested him in rethinking transport. Los Angeles is the largest metropolitan market in this app.
Members of Lyft's Board of Directors and staff, as well as Nasdaq President Nelson Griggs, join its founders in a former Toyota dealership that Lyft is converting to a driver training center where he will propose repairs and other services. The company has also invited long-time drivers and pbadengers to the event.
The Mayor of Los Angeles, Eric Garcetti, was also present when Lyft announced that it would invest at least $ 50 million a year in transportation initiatives in the cities where it operates, starting with LA. Measures include the provision of free rides at reduced rates to those in need, the addition of bicycles and scooters to the Lyft network, the construction of electric vehicle charging stations and the purchase of renewable energy credits.
"A lot of the traffic in Los Angeles," Garcetti said.
Source link
