Lyft Has High Cash Hopes for Long Awaited IPO

UPDATED

The regulatory filing for ride-hailer Lyft‘s imminent initial public offering (IPO) reveals it hopes to realize $23 billion in values when the IPO launches next week.

That valuation, according to the New York Times, is the largest a hot tech startup has received since Chinese online retail powerhouse Alibaba raked in $169 billion in its IPO on 2014. It raises the bar for other startups that are readying their IPOs this year, including Lyft’s closest peer, ride-hailing giant Uber.

Lyft will begin its IPO-pitching roadshow to sell potential investors on the offering.

According to a filling statement from Lyft, the ride-hailing service will price its opening 30.8 million shares between $62 and $68 per share. It will hit the NASDAQ Global Select Market under the ticker symbol LFYT. Lyft says it expects to raise more than $2 billion from the IPO.

The biggest immediate winners in the IPO will be Lyft’s founders, Logan Green (CEO) and John Zimmer (President). Green’s stake could be worth $569 million, and Zimmer would get up to $393 million, according to the Lyft prospectus.

Making all of this possible is Lyft’s growth in recent years. According to the company, 8.1 billion rides were booked with Lyft, with $2.2 billion  in revenues realized in 2018.

The underwriters of the offering include J. P. Morgan Chase, Credit Suisse, Jeffries, and RBC Capital Markets.

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