Pinterest Prices IPO Above Range Despite Lyft's Weak Debut
Pinterest prices its initial public offering at $19 per share, raising $1.4 billion and achieving a $12.6 billion market cap. The visual search engine moves forward despite recent market jitters caused by Lyft's underwhelming stock performance.
Pinterest prices its initial public offering at $19 per share, pushing above its expected $15 to $17 range. The visual search engine sells 75 million shares to raise $1.4 billion in new capital, earning a fully diluted market cap of $12.6 billion. This milestone marks a major liquidity event for the nearly 10-year-old company and its early backers.
The offering moves forward despite a lukewarm reception for Lyft, another recently public consumer technology company. Analysts note that Lyft's falling stock inevitably influences Pinterest's market debut, as both companies trade at double-digit revenue multiples. However, Pinterest distinguishes itself from Lyft and Uber by showing a clear path to profitability in its prospectus.
Pinterest reports $755.9 million in revenue for 2018 while reducing its net losses to $62.9 million, a significant improvement over the previous year. The successful pricing delivers massive returns for venture capital firms like Bessemer Venture Partners, FirstMark Capital, and Andreessen Horowitz, which hold multi-million dollar pre-IPO stakes in the San Francisco-based business.