Lyft is looking to raise up to $2.1 billion in its upcoming initial public offering, pegging its valuation between $21 and $23 billion according to the Wall Street Journal, as the ride-hailing service launches its IPO roadshow.
The range, equating to between $62 and $68 a share, is preliminary and could change by the time the shares start trading around the end of next week. The company issued a filing outlining the range Monday, confirming a report by The Wall Street Journal on Sunday. -WSJ
Lyft, founded in 2012 and operating in over 300 cities in the US and Canada, had revenues of $2.16 billion in the last year and a net loss of $911.3m according to the Financial Times - the largest-ever for a company entering the public markets for the first time, while as Axios notes, there is no visible path to profitability.
Expect Lyft to emphasize focus when speaking with prospective investors. It's a ride-hail company, growing at a faster clip than is Uber, and not too distracted by large side projects like food delivery and autonomous vehicle development.
- It's a smart message, although not entirely accurate. Lyft not only invests in other micro-mobility efforts like bike sharing and scooters, it also has major AV initiatives.
- Plus, it's unclear that ride-hail is actually a viable business. Uber once said its ride-hail efforts were profitable in large, developed markets like North America, but it's not reaffirmed that claim lately, and Lyft has never made it. One possible reason: the massive, albeit largely anecdotal, increase in rider discount offers. Maybe ride-hail is best as a monopoly, like taxis once were. -Axios
A final IPO price will be set by the San Francisco-based company and its underwriters based on feedback from the investors during the roadshow.
Lyft's roadshow kicks off what is expected to be one of the most busy years for technology issues, as Uber, Pinterest, Slack Technologies, Airbnb and others are waiting in the wings.
Even at the low end of the range, Lyft would be valued at far more than it was during its last private valuation of $15.1 billion in 2018, making it one of the largest US-listed new tech IPOs since Alibaba Group Holding Ltd. went public in September 2014.
Lyft's CEO Logan Green and Vice President John Zimmer will together hold 48.8% of voting power after the offering, while the company expects to operate on the Nasdaq under the symbol "LYFT." Green received a base salary in 2018 of $401,500 plus almost $42 million in stock awards. His "personal security services" have apparently run the company $935,000 per Axios.
"We thoughtfully balance investments in growth and profitability considerations, while deliberately leaning more towards growth (especially in these early days)," wrote the co-founders.
J.P. Morgan, Credit Suisse, and Jefferies are among the lead bookrunners. Fidelity, meanwhile, holds a $7.71% pre-IPO stake in the company.
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