Lyft To Get A Lift From IPO?

Lyft To Get A Lift From IPO?

Lyft is tapping into the stock market through an initial public offering (IPO).

The Wall Street Journal reported on Thursday (Dec. 6) that the ride-hailing company has “confidentially filed” a draft registration with the Securities and Exchange Commission (SEC), among the steps needed to list shares and sell them on public exchanges.

No formal date has been tied to the listing – and there are as of yet no details on how many shares are being offered or the price range that is expected – but the move has been expected, said the Journal.

In terms of rough valuation parameters, it is expected the firm will see a valuation higher than the $15.1 billion that had been seen earlier in the year, according to the financial publication, and where Fidelity Investments led the most recent financing round for the company.

Underwriters include JPMorgan Chase & Co., Credit Suisse Group AG and Jefferies Group LLC.

Subsequent steps now include a review by the SEC prior to listing.

In reference to financials, for the third quarter that ended in September, the company’s top line grew by 88 percent to $563 million. Losses grew, too, from $254 million in the period from $195 million last year.

The Lyft IPO would come against a backdrop where several other high-profile tech firms are expected to come to market as well. In one example, Uber is expected to list shares through an IPO next year that Reuters had said could value the company at $120 billion. Separately, Airbnb, which is valued at about $31 billion, is expected to list next year, too.


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