Lyft offers 30 Million Shares
CBJ — Lyft started the road show for its initial public offering, saying it plans to put more than 30 million shares up for sale with an anticipated price of between $62 and $68 per share.
That would raise more than $2 billion for the San Francisco ride-hailing company, pegging its market value at $20 billion to $25 billion, even though it hasn’t been able to turn a profit yet.
It’s the first time that Lyft has revealed how much money it hopes to raise in the IPO, and how much it believes it’s worth. Those financial targets could still change as Lyft’s investment bankers gauge demand for the company’s stock leading up to the IPO pricing, which is expected to happen next week.
Lyft will be looking to convince 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.
Lyft will meet with investors across the United States before pricing the IPO and listing on the Nasdaq at the end of the month. It will be pitching itself as a more focused bet on ride-hailing to differentiate itself from Uber, which has diversified to areas such as food delivery and freight hauling and expanded around the world.
It’s believed Uber will be seeking an IPO valued at $120 billion, although few financial analysts think that is attainable. Most seem to be of the opinion it will be closer to $100 billion.