Lyft (LYFT) made its highly-anticipated market debut on the Nasdaq, opening at $87.24, a more than 20% increase over its IPO price.
The biggest public debut since Alibaba Group in September 2014.
Lyft priced its upsized 32.5 mln share offering at $72/share, which was on the high end of the expected range, which was also increased ahead of the pricing.
The money-losing company has garnered significant interest from investors, which suggests that risk tolerance remains at a high level despite worries about a slowdown in the global economy.
Lyft suffered monumental losses last year, totaling $911 million -- reportedly more than any other US startup in the year prior to its IPO.
The company was formerly known as Zimride, Inc. and changed its name to Lyft, Inc. in 2013. Lyft, Inc. was incorporated in 2007.
Sector: Technology
Industry: Software - Application
Full Time Employees: 4,791
Hadquartered in San Francisco, California.
http://www.lyft.com
The IPO gives Lyft, which still has yet to turn a profit, a valuation of $26.4 billion, marking huge paper gains for early investors such as billionaire Carl Icahn, General Motors and Google-parent Alphabet’s investing arm CapitalG.
Icahn secured a $150 million investment in 2015 when Lyft was valued at $2.5 billion — suggesting as much as a $1.4 billion gain on Friday.
GM gained almost $1 billion on its investment on Friday, while CapitalG gained almost $500 million.
Founders Logan Green and John Zimmer are worth $655 million and $452 million, respectively, and hold both Class A and Class B shares.
Lyft President John Zimmer and CEO Logan Green applaud as Lyft lists on the Nasdaq
Lyft President John Zimmer and CEO Logan Green applaud as Lyft lists on the Nasdaq at an IPO event in Los Angeles.
CELEBRATION AT AN AUTO DEALERSHIP
Instead of celebrating the first day of trading at the Nasdaq in New York, Lyft opted to mark the occasion at a defunct auto dealership in downtown Los Angeles.
Lyft's staff, with family and friends, and Los Angeles Mayor Eric Garcetti gathered before dawn for the kickoff. The building, unmarked on the outside, gave away nothing about the celebration tucked away in the bowels of the old facility, which had been outfitted with pink confetti and Lyft-branded scooters.
Lyft recently bought the facility to turn it into a driver services center, the first of several it plans to open across the United States in the coming months, where drivers can obtain services like help with taxes or charging electric vehicles.
Garcetti said in his remarks that the old warehouse symbolizes "a transformation of our economy."
major shareholders
