Lyft to debut IPO with $24 billion valuation

The ridesharing company will launch its IPO on Wall Street at $72 a share.

Lyft will debut its initial public offering (IPO) at $72 a share with a $24 billion valuation. The ridesharing app will launch on Wall Street with the symbol, ‘LYFT.’

Details of Lyft’s IPO

Ahead of its launch, Lyft raised its share price after beating Uber to be the first ridesharing company to go public. Lyft’s co-founders, Logan Green, and, John Zimmer, will own 49% of the shares in Class B stock, which holds the most voting power. The corporation’s board members and executives will control 61% of voting rights as shareholders in the dual-class share system. GM and Google also have investments in Lyft as well. Long-time drivers that completed 10,000 rides are also eligible to get Lyft stock.

Will Lyft’s IPO be profitable?

Lyft reported $2.2 billion in revenue in 2018, but also had $911 million in losses. The company may also be overshadowed by rival Uber when it goes public later this year. Wall Street investors are eager to invest in tech startups like Lyft after the delay because of the US government shutdown. However, the eagerly awaited IPO may not live up to its hype. Brian Hamilton, data analyst from Sageworks, said that if the US stock market is strong, investors will overlook Lyft’s steep losses.

‘In a good market, people look beyond things. They don’t see the problems as much,’ said Hamilton.

Other analysts like,Tom White, from D.A. Davisdon are sceptical that Lyft will be profitable because of the incentives the company has to offer to retain drivers.

‘Meaningfully reducing its use of driver/rider incentives may prove difficult in the near-term for Lyft, given that the US is arguably the most competitive large ride-sharing market in the world. Along with the years of losses, the path to profitability is highly unclear,’ said White.

Investors will eagerly await the launch of Lyft’s IPO to see whether ridesharing companies can succeed on Wall Street.

Correction: 09/04/19 05:30 am – We stated that Lyft will debut its initial public offering at $87 a share when it was actually $72 a share. We have reflected this change in the article above.

IGA, may distribute information/research produced by its respective foreign affiliates 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.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. 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, and 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.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.