Following the recent stock debut of Lyft, two tech firms will soon enter the public markets. Videoconference firm Zoom Video Communications Inc. and digital image board Pinterest are said to start trading on Thursday (April 18), The Wall Street Journal reported.
Pinterest, on one hand, is said to price its shares Wednesday (April 17). The paper reported that is probably to be priced higher than its proposed range. Zoom will also price its stock on the same day. And the paper said Pinterest might be “eclipsed in valuation” by Zoom.
In June 2017, Pinterest was privately valued at over $12 billion. At the midpoint of its initial range, Pinterest would have a value on a fully diluted basis of $10.6 billion. Zoom, in June 2017 with its latest private-financing round, was valued at $1 billion. Zoom’s fully diluted valuation would be roughly $10 billion at its new range’s input.
Zoom, however, could have a valuation that is higher in Pinterest. That would make for a “surprising twist,” the paper reported. As it stands, the company’s software is used by many executives as well as investors. Eric Yuan, the company’s chief executive, attended many meetings from the company’s California headquarters during the roadshow for the firm.
The news comes as it has been a bumpy ride for Lyft amid Uber’s approaching initial public offering IPO, and that dim trend continued on Monday (April 15). Its stock price hit a 52-week low on Monday following a 20 percent stock price decline last week. The company’s stock price stood at $56.44 by 1:55 p.m. (EST) on Monday, but its stock had a cost $72 per share on March 29 when Lyft launched its IPO.
Uber released its IPO prospectus since then, and investors apparently soured on that firm’s ridesharing competitor. There, however, is confusion about how to measure as well as compare the two ridesharing companies. Each uses differing metrics for some important financials, including gross bookings.