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Lyft to hail for IPO
Posted on Friday, 07 December 2018 11:10
US ride hailing application (app) developer Lyft has announced it is filing confidentially for an initial public offering (IPO) as it battles its rivals for investment. The company noted that the listing will start after the Securities and Exchange Commission completes its review process, which remains subject to market and other conditions. Sources close to the matter told Reuters that the sale is due to commence in the first half of 2019. Lyft has not revealed any further details regarding the offering’s price or the number of shares to be sold, but the business was last valued at USD 15.00 billion. Sources close to the sale however, told Reuters that the ride-hailing app’s fundraisers will give the group a valuation of between USD 20.00 billion to USD 30.00 billion. According to Reuters, Lyft hopes the offering will attract investors who are willing to take on loss-making, but high-profile businesses and lead them into new markets. Formed in 2012, Lyft operates in over 300 cities across the US and Canada, and provides services for a range of industries, such as airlines, healthcare, hospitality, education and technology, among others. A move comes during a competitive period for ride-hailing firms, as industry giant Uber also looks to garner investment with its own IPO, which according to reports is also expected to begin next year and would value the company at around USD 120.00 million. Earlier in October, the Wall Street Journal noted that Lyft had already selected its underwriters, with JPMorgan and Credit Suisse being hired to lead the offering. Other companies also planning an IPO in 2019 include Airbnb, which has been valued at USD 31.00 billion. However, the offerings come during a turbulent period on the market, with stocks experiencing their worst fourth financial quarter since 2008, CNN reported. Further factors, such as the continual trade tensions between the US and China have also had an effect on IPO’s, with Tencent Music downsizing its first-time share sale to USD 1.20 billion. © Zephus Ltd