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The carpool company, Lyft, announced Thursday that its initial public offering had risen to $ 72 per share, valuing the company at $ 24.3 billion. This will probably be the first of many IPOs in the technology sector in the coming months.
Lyft's shares are expected to start trading on Friday morning on the Nasdaq Global Select Market under the symbol LYFT. The company offers 32.5 million Clbad A common shares, as well as 4.9 million additional shares. Subscribers have the option of buying, said the company in a statement Fortune.
A generation of technology startups has become a group of companies worth tens of billions of dollars, while avoiding the scrutiny, legal costs and regulations badociated with an IPO. Lyft is the first of the IPO launchers to brave a public offering in 2019; other high-tech companies such as Uber, Palantir, Pinterest and Zoom are also preparing for IPOs in the near future.
Lyft's IPO was well above its initial price range of $ 62 to $ 68. The offer will generate $ 2.3 billion for the company – or $ 2.7 billion if over-allotment is exercised – which could help it compete with rival Uber. Uber is expected to file an IPO prospectus next month for an offer worth up to $ 100 billion to $ 120 billion.
According to Renaissance Capital, the final price of Lyft's IPO above its initial estimate bodes well for the stock, at least in the short term. "In the last 10 years, 97% of deals with prices above the range were higher than their beginning, with an average first day yield of 42% and a median of 33%," said Renaissance. "This compares with the overall average of 67% of IPOs that have positive results on the first day, generating an average return of 13% and a median of 6%."
Lyft in its prospectus indicates that its revenues in 2018 have more than doubled to $ 2.2 billion, while the net loss has increased from $ 688 million in 2017 to $ 911 million. the public stock market for the first time.
Lyft was valued at $ 15.1 billion for the last time when it raised $ 600 million in private investment last June.
JPMorgan, Credit Suisse, Jefferies, UBS, Stifel, RBC Capital Markets and KeyBanc Capital Markets act as prime managers of Lyft's offering.
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