Lyft applies for IPO

The ride-hailing app files confidentially for its eagerly awaited initial public offering.

Man looking at stock market
Source: Bloomberg

Lyft is one step closer to going public. The ridesharing company has applied for an initial public offering (IPO) with the US Securities Exchange Commission (SEC). The corporation acknowledged the filing in a statement.

‘The initial public offering is expected to commence after the SEC completes its review process, subject to market and other conditions,’ said Lyft.

Lyft rises to top of 2019 unicorns

Lyft and its ride hailing competitor, Uber, are two of the most prominent unicorns, companies whose valuations top $1 billion. The corporation has been valued at $15 billion. The service has been successful since it launched in 2012. 23 million riders have used the app and the business employs one million drivers. Lyft has always been in second place, but with the latest IPO filing, the corporation has beaten Uber in the race for rideshares to go public.

Lyft has not been profitable with losses equaling $254 million, an increase from last year. However, the company earned $563 million in its third quarter (Q3) earnings, a growth from $300 million in 2017. Many banks assisted the corporation in filing for an IPO, including JPMorgan Chase.

Lyft moving beyond cars

Though Lyft is known as a car sharing service, the company wants to branch out into more diverse forms of transportation. To increase its 35% of its rideshare market, the app purchased Motivate, a bike sharing startup. The corporation plans to brand the alternative transportation division as Lyft Bikes to help customer share bicycles and scooters.

Lyft’s IPO is expected to debut in early 2019. The number of shares and price range of stocks have not been determined.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer