Lyft is seeking a valuation of up to $23 billion as it embarks on its IPO roadshow
- Lyft is seeking a valuation of up to $23 billion as it embarks on its IPO roadshow this week, according to Reuters and The Wall Street Journal.
- The company wants to raise as much as $2 billion from the roadshow.
- Lyft is the first ride-hailing firm to go public and will spark a slew of tech IPOs this year.
Ride-hailing platform Lyft will launch the investor roadshow for its initial public offering on Monday, seeking to raise as much as $2 billion and to be valued at more than $20 billion, according to people familiar with the matter.Lyft will be seeking to convince investors to make large commitments to its IPO, rather than hold out for its larger rival Uber, which is planning to launch its own public offering next month, the sources said.Advertisement
Reuters said Lyft is pursuing a valuation of more $20 billion, while The Wall Street Journal reported that the firm is targeting between $21 billion and $23 billion, which equates to between $62 and $68 a share. The Journal also reported that Lyft will raise up to $2 billion from the roadshow.
Lyft will meet with investors across the US before pricing the IPO and listing on the Nasdaq at the end of the month, sources told Reuters.It will be pitching itself as a more focused bet on ride-hailing to differentiate itself from Uber, which has diversified to areas such as food delivery and freight hauling and expanded around the world, the sources said.
Lyft declined to comment.
After a quiet start to the year, technology companies are lining up for public listings as public equity markets hover near historic highs, but remain vulnerable to geopolitical concerns, including tensions over trade agreements and a slowdown in economies including Europe and China.Other Silicon Valley unicorns - startup companies with valuations of at least $1 billion - including business messaging company Slack and image-sharing company Pinterest, are waiting in the wings to go public later in 2019, sources have said.Advertisement
Lyft the first ride-hailing firm to go public
Lyft's IPO will mark the first time a ride-hailing company has debuted on the US public markets. Lyft launched in 2012 and is led by its founders, Logan Green and John Zimmer.Advertisement
Lyft will emphasize to investors its rapid growth in the United States and its relatively uncomplicated business model, which focuses on selling rides in cars, bikes and scooters.
In its IPO filing, Lyft said its US market share has risen to 39%, from 35% early in 2018, gaining some ground on long-dominant Uber. Unlike Uber, Lyft operates only in North America.Lyft's revenue was $2.16 billion for 2018, double the previous year and up 528% from $343 million in 2016. But Lyft posted a loss of $911 million for 2018, which climbed from $688 million in 2017 and $682 million in 2016, according to its IPO filing.Advertisement
Losses could continue to mount, Lyft cautioned, as it continues to invest and eye a broader international expansion, and it could be forced to increase driver pay.Uber's revenue last year was $11.3 billion, while its gross bookings from rides were $50 billion. But the company lost $3.3 billion, excluding gains from the sale of its overseas business units in Russia and Southeast Asia.SoftBank's Vision Fund and Toyota Motor Corp are part of a consortium of investors in talks to invest $1 billion in Uber's self-driving car unit, Reuters reported on Wednesday. Taking on large investors that will influence a key business is an unusual move for a company so close to an IPO.Advertisement
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