Lyft has come with an official announcement that it aims to achieve the biggest initial public offering for a tech company after 2014. The company that dominates the ride-hailing market in America has recently stated in its new regulatory filing that it aims to achieve a valuation of $23 billion once it successfully lists its stocks in the American stock market.
This will be the biggest IPO for a tech company after Chinese e-commerce giant Alibaba listed its stocks in the American market and achieved a valuation of $169 billion. Lyft is currently valued at $15.1 billion, which it achieved in its latest funding round. So the target of $23 billion is quite ambitious for the company, as it expects a great reception from the stock market investors.
Lyft is just one of many tech companies that are preparing to go public in 2019. Lyft’s chief rival in the American market, Uber has already filed its S-1 documents and aims to offload its shares in the New York Stock Exchange (NYSE). Other tech companies include Pinterest and Slack which will go public in the first half of this year. This stock market listing will be great news for the early investors in these tech companies, who have poured in billions in venture capital funding and are now expecting to reap the rewards of their investment. Tech investors and early employees will be the people who will be most benefited when the IPO of these companies are successfully completed.
As Lyft is beating out Uber to the stock market, many analysts and investors are hoping the initial public offering of Lyft will go smoothly, as soon after Uber plans to enter the stock market, and their valuation might be six times higher than that of Lyft. Although both these ride-hailing companies have yet to turn a profit, they have gained a massive user base and has their operations in multiple countries.
Lyft has already started its roadshow around American cities to promote their stock to prospective investors. The roadshow is expected to grab further attention to what is shaping up to the first initial public offering from a ride-hailing company based in America.
Lyft’s IPO will test the waters for what the investors perceive the ride-hailing service to be. Both Lyft and Uber have grown rapidly and gained millions of users, but are yet to turn a profit. Their business model currently depends on hefty subsidies as both companies look to woo drivers to use their apps.
In an earlier filing, Lyft stated that it lost $911.3 million in last year’s operation, and had a revenue of $2.2 billion. In a recent new filing, the company has proposed a high-end share price ranging from $62 to $68, which will enable the company to achieve a revenue figure of around $2 billion. This figure could hit $2.5 if demand for Lyft shares skyrockets.