Lyft IPO Enthusiasm Drives Up Founder Stakes to $1.4 Billion

Gone are the days of Lyft's pink mustache grills.                  Lyft

The San Francisco company's stock is set to begin trading Friday on the Nasdaq stock exchange under the ticker symbol "LYFT".

The offering fulfilled a key strategic goal for Lyft: beating larger rival Uber to the market. Uber, who is also set to go public this year, has reportedly received proposals from Morgan Stanley and Goldman Sachs, which value it around $120 billion.

Given that the company is going public with 31 million shares to sell off, that could have put Lyft's market capitalization at around $24 billion - a tidy sum for a company that still finds itself buried in debt.

Even before its IPO, Lyft was considered a Silicon Valley "unicorn" - a private company with a valuation north of $1 billion. Lyft also said it ended up selling 32.5 million shares in the offering, above the almost 31 million that it had targeted in its regulatory filings leading up to Thursday evening's pricing.

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.

It also indicates many investors are willing to overlook uncertainty over Lyft's path to profitability and its strategy for autonomous driving, for fear of missing out on such a high-profile technology IPO.

Omar Blasts Pelosi for Criticizing Her Support of 'Bigoted' Movement
Democrat had wanted. "I simply declare - to be anti-Semitic is to be anti-American ". Pelosi denounced questioning the loyalty of Jewish or pro-Israel lawmakers.

Uber and Lyft offer the same core service - hailing a ride through a smartphone app - but have very different public profiles. First, Buffett himself doesn't like to invest in IPOs.

The IPO gives Lyft a value of about US$25 billion, including restricted stock and greenshoe shares that could be issued later by underwriters. Reuters reported the IPO was oversubscribed after just two days.

Lyft lost $911 million on $2.2 billion in 2018 revenues.

High demand for the offering pushed up the range of Lyft's stock pricing, well north of its original targeted range of $62-68.

Lyft and Uber drivers have tried - and failed - on multiple occasions to be reclassified as full-time employees instead of freelance workers. Uber is in more than 70 countries, although it has steadily consolidated certain overseas markets, while Lyft has stuck to the United States and Canada only.

Through Class B shares that carry 20 votes for each ordinary share, co-founders Logan Green, who is chief executive officer, and vice chairman John Zimmer will have about 49% of the voting rights, according to the filing.

Related News:



Most liked

Tiger Woods fireworks sets up mouthwatering Rory McIlroy battle
Perhaps the biggest upset of the day belonged to Denmark's Lucas Bjerregaard , who whipped fifth-ranked Justin Thomas 3 and 2. That means Reed and Lowry, even if they were to win Friday matches, can not reach the two points Garcia already has.

House Fails to Overrule Trump’s Veto, Border Emergency Continues
The department notified Congress on March 25 that it has authorized the transfer of $1 billion toward wall construction. All 13 Republicans who voted with Democrats last month to oppose Trump's declaration did the same Tuesday.

USA government criticised over plan to cut Special Olympics funding
While the proposal faces an uphill battle , lawmakers still criticized the idea of the Special Olympics losing support. House Democrats grilled DeVos in a budget hearing Tuesday, with Rep.

Mueller report: Barr won't commit to sharing full findings, Democrat says
Just 43% feel Congress ought to end the investigation completely following the release of Barr's summary of Mueller's findings. Schiff angrily refused and said some of the actions of Trump and his associates amounted to " collusion " and "compromise".

Cyclone Veronica lashes Western Australia's north-west coast
The Bureau of Meteorology said gale-force winds and torrential rainfall of up to 500 millimeters could be expected by Monday. Veronica is the third tropical cyclone this season and it comes as cyclone Trevor whips through the Northern Territory.

Apple Card Credit Card Might Be Your Financial Savior
Apple Arcade games will be great for families, respect user privacy and will not have ads or require any additional purchases. Not many years ago, Apple quietly released its TV app , previously called Videos, but many users weren't convinced by it.

Kamala Harris is 'at a loss' over Jussie Smollett's charges being dropped
First Assistant State's Attorney Joseph Magats said prosecutors "stand behind the investigation and the facts". She said the charges Smollett faced were unlikely to have led to a prison sentence if he had been convicted.

Michael Schumacher's son to test Formula 1 vehicle for Ferrari in Bahrain
Mick Schumacher , son of F1 legend Michael Schumacher , will reportedly make his Formula 1 test debut for Ferrari in April. He secured eight wins from a total of 12 races and scored an invincible 347 points in the entire season.

DOJ Now Argues Obamacare Should be Struck Down
Though expected to pass the Democrat-controlled House, the bill will immediately fail in the Republican-controlled Senate. It has prevented insurance companies from discriminating against 133 million Americans with pre-existing conditions.

Winx Has Won Her 32nd Straight Race
Group 1 events are the highest class of thoroughbred racing, attracting the best horses and highest prize money. That would mean the Queen Elizabeth Stakes at Randwick on April 13 will be her final race.

Israeli military says has begun striking Hamas in Gaza
Photographs of the scene show that a wall was pierced by pieces of shrapnel and that a balcony awning was destroyed by the impact. Palestinians heard two loud explosions in northern Gaza and reported that two Israeli drones were hovering over Gaza City.

Patriots will open 2019 season on Sept
The Browns, Cowboys, and Chiefs are good candidates to be the Patriots' opponent in Week 1, but that's just guesswork. It will be known when the full schedule is released later in the spring.

Michael Avenatti under arrest, charged with extortion, prosecutors say
In the federal complaint against Avenatti, it notes that he was scheduled to meet with the attorney for the company on Monday. Prosecutors say he used the money in the intervening months to pay expenses for his coffee business and personal use.

Trump signs declaration reversing US policy on Golan Heights
US President Donald Trump has signed a decree saying the United States recognizes Israeli sovereignty over the Golan Heights . He has also cut USA funding to the Palestinians and taken a hardline stance against Israel's arch regional rival, Iran.

Boeing to Brief Pilots, Regulators as it Eyes 737 MAX Return
Boeing is preparing to release a software update and revised training guidelines that are aimed at addressing the MCAS issue. The new system is created to push the plane's nose down for no longer than 10 seconds in the event of a detected stall.