Lyft Sets $62 to $68 Price Range Ahead of Nasdaq Debut
Ridesharing company Lyft officially starts its IPO roadshow with plans to trade on the Nasdaq under the ticker LYFT. The offering aims to raise up to $2.1 billion despite the company reporting significant net losses.
Ridesharing company Lyft kicks off its IPO roadshow and sets its sights on a Nasdaq listing under the ticker symbol LYFT. The company sets its initial public offering price range between $62 and $68 per share, planning to sell over 30 million shares of Class A common stock. At the top of this range, the offering raises up to $2.1 billion and gives Lyft a total valuation of $18.5 billion.
This highly anticipated public debut happens as investors closely watch the financial health of the ridesharing industry. Lyft shows rapid growth with $2.1 billion in 2018 revenue and a massive user base of 30.7 million riders, but the company still operates at a loss. It posts a net loss of $911.3 million for 2018, although this loss shrinks proportionately compared to its previous financial years.
The upcoming IPO provides a crucial funding mechanism for Lyft to sustain its operations and work toward profitability. Upon completion of the public listing, CEO and co-founder Logan Green retains significant control with nearly 30 percent of the voting power. This move also sets the stage for its much larger competitor, Uber, which prepares for its own imminent public debut.