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Ride-hailing platform Lyft to make Nasdaq debut next week, valued at $23 billion

The ride-hailing platform, Lyft is planning to peg its valuation around the $21 billion and $23 billion when it starts its roadshow to promote its initial public offering (IPO) on Monday according to a report by The Wall Street Journal.

People familiar with the matter told The Wall Street Journal that the shares will be priced between $62 and $68 which could change by the time the shares start trading next week. The overall valuation will also include $2 billion which the company plans to raise through its public offering.

Through its roadshow, Lyft will be trying to convince its investors to make large commitments to its IPO, rather than hold out for its larger rival Uber Technologies, which is planning to launch its own public offering next month.

As the Lyft IPO enters its final stage, it’s going to be a hectic few months as other companies are Uber Technologies Inc., Slack Technologies Inc., and others are also planning to go public. Lyft’s IPO will mark the first time a ride-hailing company has debuted on the U.S. public markets. Lyft was launched in 2012 and is led by its founders, Logan Green and John Zimmer.

As per the report, Lyft posted revenue of $2.16 billion last year which was more than double the figure posted in 2017 and the number of active rides has also tripled during the period starting from the end of 2016 to the end of 2018.

Lyft’s biggest rival, Uber is also planning to go public this year and the company has been valued at $120 billion and bankers say that Lyft’s valuation and response to its IPO will go a long way in determining the figure Uber and its underwriters eventually settle on.

In its IPO filing, Lyft explained that its market share has increased to 39 percent from 35 percent last year and it has helped it to gain some ground on its long-dominant rival Uber. It is worthwhile to note here that unlike Uber, Lyft operates only in North America.

Source: The Wall Street Journal

Image: Shutterstock

Ride-hailing platform Lyft to make Nasdaq debut next week, valued at $23 billion
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