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.
This information has been prepared by IG, a trading name of IG Markets 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. See full non-independent research disclaimer and quarterly summary.
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
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 spread betting and CFDs.
Stay on top of upcoming market-moving events with our customisable economic calendar.