Lyft's trading debut to be watched by IPO-hungry tech companies

Lyft's trading debut to be watched by IPO-hungry tech companies

Lyft's trading debut to be watched by IPO-hungry tech companies

"In a good market, people look beyond things".

At the upper end of the new range, Lyft would have a market capitalization of US$20.45 billion, a little larger than Snap when it went public in 2017. "We like Lyft's relatively narrower focus on consumer transportation but still note that Uber has an edge on Lyft in terms of an earlier start, higher market share, and a stronger network effect around its service". It said it priced 32.5 million shares, slightly more that it was offering originally, at US$72, the top of its already elevated US$70-US$72 per share target range.

The price is at the high end of a revision Lyft made after high investor demand prompted the company to increase its initial goal of fetching $62 to $68 for each of the almost 31 million shares sold in the IPO. The San Francisco-based company also increased the size of the offering from the 30.8 million shares it had planned to sell. Lyft, entirely different from traditional taxi service providers, may be such a company.

Up next: Lyft rival Uber is expected to file IPO documents in the coming weeks. "Uber has significantly more scale and global market access then Lyft has, so the higher Lyft can go, the higher Uber will go", he said. Other hotly-anticipated tech IPOs are expected this year from business collaboration firm Slack and visual discovery engine Pinterest.

Lyft is officially a public company.

Lyft has been gaining ground on Uber in the past two years, which enabled it to double its revenue last year to $2.2 billion - the kind of growth that tends to wow investors.

Lyft, which was valued at US$15 billion in final private fundraising round in 2018, kicked off its 10-day IPO roadshow on March 18. It posted a loss of $911 million in 2018 versus $688 million in 2017. Lyft co-founders Logan Green and John Zimmer were also joined by some of the comnpany's drivers on Friday morning.

The stock is set to begin trading on the Nasdaq today under the symbol "LYFT".

JPMorgan Chase & Co. led the offering with Credit Suisse Group AG and Jefferies Financial Group Inc.

Ives called Lyft's stock market debut a "watershed" event for the tech sector and ridesharing industry that he saw as "one of the most transformational growth sectors of the United States consumer market over the past five years".

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