Lyft increase IPO price target after gaining ground on Uber
The ride-hailing start-up has upped its price range for its upcoming initial public offering after investor appetite grows as the company grows its market share against larger rival Uber.
Lyft has increased its price target for its initial public offering (IPO), after investors have shown a willingness to downplay its losses in favour of the company’s growing market share against is larger rival Uber.
The ride-sharing company raised its IPO price range from $62 - $38 to between $70 and $72 a share, representing a valuation of $24.3 billion. Lyft opted to increase its target price for its IPO as investor demand has grown significantly for what is shaping up to be the largest listing since Snap in 2017.
Investors have healthy IPO appetite
The new of Lyft increasing its IPO price range is a good sign for other new listings, with Levi Strauss & Company going public last week, hitting its targeted range, spurring rivals Lee and Wrangler to follow suit.
Lyft’s confidence in upping its target price range also shows that investors are happy to look past a company’s flaws, with the ride-sharing start-up struggling to reach profitability, incurring heavy losses in its pursuit for driverless driving.
IPO market suffers slow start to 2019
The IPO market has struggled to find its footing in 2019, mainly due to increased volatility at the tail end of last year and the long-running government shutdown in the US which stopped regulators from processing new IPO applicants.
These headwinds have left investors hungry for new IPOs and Lyft has already benefitted from the backlog with its listing heavily oversubscribed.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Be ready to act on ECB opportunities
Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in 22 April 2021.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
