[ad_1]
SAN FRANCISCO – Pinterest plans to set a price range for its initial public offering that gives it a value of less than $ 12 billion according to private investors, according to a person familiar with the situation.
The digital billboard company is preparing to file a deposit Monday indicating the price range of its I.P.O., said the person, who declined to be identified because the details are confidential. Pinterest, valued at $ 12 billion in 2017 by venture capitalists and other private investors, is part of a horde of well-known but unprofitable technology startups that are now heading toward the market public.
A stock market valuation of less than $ 12 billion for Pinterest raises questions about investor demand for these companies. Lyft, the deeply unprofitable strike company, was made public last month at the price of much hype – until its shares fall quickly below the price of its bid on the second day of trading. . The stock has since recovered.
The performances of Lyft and Pinterest in their debut in public will be critical in the preparation of Uber's public offering, the largest of this generation of tech start-ups. Uber is expected to go public in the next few months at a value of about $ 120 billion, which would be the largest offering of a US company.
Several other small businesses are planning public offerings, including Zoom, a videoconferencing company; PagerDuty, a software company; and Slack, an office communication company.
The Wall Street Journal Previously, Pinterest's public offering price range would be less than $ 12 billion.
The filing of Pinterest Monday will coincide with the start of the company's so-called road show, during which it plans to introduce institutional investors before setting its final price and the first day of trading. Strong investor demand could cause the company to increase the price of its shares.
Private investors paid $ 1.5 billion into Pinterest. A market start of less than $ 12 billion would be a loss for some of them.
Pinterest, which manufactures digital bulletin boards that allow users to save images and links from the Web, has always been cautious in its spending and approach to growth. Its general manager, Ben Silbermann, has built Pinterest slowly and regularly. Pinners users today use Pinterest to create style tables on themes such as food, events and hobbies.
Silbermann's approach contrasts with that of other entrepreneurs who run businesses known as "unicorns", valued at over $ 1 billion by private investors. These companies have generally favored rapid growth over earnings and take several years to go public. Unicorns that sell or become public below their last private rating are called "undercorns".
Like his peers, Pinterest loses money. But the company, which generates advertising revenues, is burn less money than Lyft or Uber. Last month, Pinterest revealed that it had lost $ 63 million on a $ 756 million business figure in 2018. Pinterest is also growing rapidly, posting a 60% jump in revenue. between 2017 and 2018.
The company plans to list its shares on the New York Stock Exchange under the symbol PINS.
[ad_2]
Source link