Pinterest prices IPO at US$19 a share, above target range
The pricing which was above its target price, has helped it fetch a valuation of US$12.66 billion.
Social network sharing app Pinterest on Wednesday said it has raised US$1.43 billion in its initial public offering (IPO), pricing its offering at US$19 per share. The pricing which was above its target price, has helped it fetch a valuation of US$12.66 billion.
Last week Pinterest pegged its IPO price range below its private market valuation, offering 75 million shares for US$15 to US$17 a share, which on a higher range, would price the firm at a valuation of US$11.3 billion.
The new sum would make the firm close to its potential private market valuation of US$12.3 billion last priced by investors in 2017.
Pinterest is due to start trading on the New York Stock Exchange on Thursday under the symbol PINS. The lead underwriters on the IPO are Goldman Sachs, JPMorgan Chase and Allen & Co.
Pinterest IPO the next indicator on Wall Street demand for tech IPO market this year
Tech companies about to go public have been moderating their expectations after witnessing ride-hailing firm Lyft's stock taking a dump after it priced its IPO at the top end of its range at US$72 apiece.
Hype around Lyft’s stock was short-lived after its IPO was priced on the top end of its price range last month, which assigned it a valuation of US$24 billion in an offering that raised US$2.34 billion.
On Monday, Lyft's stock tumbled 22% lower than its offer value barely half a month on the Nasdaq, at US$56.11. The stock pared back some losses by Wednesday, gaining 5.80% or US$3.26, to close at US$59.51.
The pricing decision from Pinterest was influenced by Lyft’s IPO, as well as a slowing growth in the US, said experts. The conservative pricing was to avoid a situation like Lyft.
The difference for a tech company like Pinterest compared to Lyft will be in its growth performance, as its losses have shrunk from a year ago unlike Lyft, which is a scenario that is likely to sit better with Wall Street.
For 2018, Pinterest said it hit about US$756 million in revenue from online advertisements, a 60% growth rate that accelerated from the previous year. The firm’s net loss shrank from US$130 million in 2017 to US$63 million last year.
Pinterest was launched around 2011, and it allows users to save images and links from websites on digital pin boards. The collage mood boards are often pinned based on themes from the users, on topics like food, hobbies, and wedding.
Pinterest says 265 million users go on its platform at least once a month.
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