In a much-anticipated move, one of the leading names in the ride-hailing service arena, Lyft went public on Friday and its shares rose by nearly 23 percent amid strong investor demand for the ride-hailing service, according to a report by TechCrunch.
Lyft’s IPO is the biggest so far and it sets the stage perfectly for other Silicon Valley unicorns like Pinterest Inc, Postmates Inc and Slack Technologies Inc. The stock offering was an instant success, with shares selling for $87.24 on Friday morning, which was 21 percent higher than the initial price.
As per the report, On Thursday, Lyft priced 32.5 million shares at $72, the top of its already elevated $70-$72 per share target range, and it raised nearly $2.34 billion in its initial public offering (IPO).
Speaking on Bloomberg TV, co-founder Logan Green said:Lyft, Uber
“We are making tremendous progress going after this once-in-a-generation shift where this entire industry, a $1.2 trillion market, could flip from an ownership model to a service model and we are leading the way there.”
Lyft’s 2018 losses have increased to $911 billion, which is well above the $688 million the company incurred in 2017 despite the fact that the revenue doubled to $2.16 billion in 2018. It is worthwhile to note here that the current predicament of loss-making unicorns presents a difficult choice for the customers who don’t want to miss out on growing companies and at the same time want to weigh the risk factors associated with the business.
Lyft’s IPO paves the way for Uber which is planning to go public in April and would be valued at $128 billion at its IPO if awarded the same multiple as Lyft. As of December last year, Lyft has a share of 39 percent in the U.S. market up from 35 percent last year.
Speaking to The Economic Times, Lyft Chairman Sean Aggarwal said that the company will continue to prioritize North American growth over international expansion after completing its IPO.