Lyft’s IPO oversubscribed, valuation may exceed US$23 billion: sources
The firm had said on Monday it aims to raise up to US$2 billion in its IPO at a fully diluted valuation of as much as US$23 billion, which includes restricted stock.
On-demand transportation company Lyft Inc’s initial public offering (IPO) is said to be oversubscribed based on current commitments from investors, as it completes the second day of its IPO roadshow on Tuesday.
This makes it more likely that the transport start-up will either hit its US$23 billion valuation or exceed the target. The exact level of oversubscription for the IPO was not given, sources told Reuters. The IPO price is still not decided as well, the sources said.
Lyft started its IPO road show on Monday and has been spending the past few days calling on investors in the Big Apple, the sources added.
The firm had said on Monday it aims to raise up to US$2 billion in its IPO at a fully diluted valuation of as much as US$23 billion, which includes restricted stock.
Expect Lyft’s valuation to rise to US$20 - US$25 billion
Earlier reports from IG had mentioned Lyft planning to list its shares on America’s tech-rich Nasdaq and revealed plans on it launching its roadshow on the IPO this week.
Lyft’s valuation is expected to be between US$20 billion and US$25 billion in its IPO, but the plan could change due to market conditions.
Lyft which was last valued at US$15 billion, had selected JPMorgan Chase & Co as the lead underwriter of its IPO, together with Credit Suisse Group and Jefferies Group.
The share price for Lyft’s stock is expected to be between US$62 to US$68.
Dual-class structure, similar to many other tech stocks
Co-founders John Zimmer and Logan Green will hold less than 50% of shares. There will be a dual-class structure to the stocks, similar to tech firms like Alibaba and Facebook.
For Lyft's share structure, one class of shareholders will have 20 votes per share, while another class will have one vote per share.
The stock option will be offered to salaried employees and to long-term drivers. The drivers can get stock options or a cash bonus.
Lyft, similar to its counterpart Uber, have yet to turn a profit. Lyft reported a loss of US$911 million in 2018, widening from the US$688 million in losses in 2017.
The information 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 Bank S.A. 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 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.
Act on share opportunities today
Go long or short on thousands of international stocks with CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take your position.
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.
