Lyft Prices Shares At $72, Gets Valued At $24 Billion Before IPO

BY Brad Anderson | Posted on

Ride-hailing company Lyft has priced its shares at $72 a piece and raised $2 billion prior to debuting on the New York Stock Exchange this morning.

Lyft’s decision to price its shares at $72 apiece sits at the top of the expected range and gives the company a fully diluted market value of $24 billion. A total of 32,500,000 shares of Lyft’s Class A common stock are being offered alongside an additional 4,875,000 shares which underwriters have the option to purchase.

When Lyft hits the New York Stock Exchange, it will become the first ride-hailing company to go public. The IPO has significantly lifted the value of Lyft from its previous valuation of $15.1 billion.

Interestingly, Tech Crunch notes that Lyft has the largest net losses of any pre-IPO business, posting losses of $911 million on revenues of $2.2 billion last year. On the other hand, it has the largest revenues of a pre-IPO company behind only Google and Facebook.

Lyft’s initial public offering is particularly important because next month, rival Uber is also expected to unveil its IPO prospectus. Uber has a value exceeding $100 billion and is perhaps one of the most anticipated IPOs in recent years. Uber reported net losses of $865 million in Q4 2018 with revenues of $3 billion, so, like Lyft, it has so far failed to post a profit.

A wave of other technology-based companies like Pinterest, Slack, Zoom, and potentially Airbnb are also planning initial public offerings in the coming months.

In the lead-up to its IPO, Lyft announced its new ‘Driver Services’ program to help support its drivers. Among the new services offered are Lyft repair garages, a Lyft debit card, mobile repair services and more.

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