Shares of Lyft rose 23% at the public market debut on Friday. Shares were opened at $ 87.24 per unit and eventually made a modest profit. The IPO marks the first days of a high-tech heavyweight class that went public in 2019.
Lyft said that it had sold 32.5 Million shares, overestimated, for $72 per share. This is at the top of the indicated range, which has already been moved from an initial range of $ 62 to $ 68. This means that the company raised approximately $ 2.3 Billion through this offer. Shares closed at $78.29, up by 8.7%, representing a modest IPO for a giant technology company. There was, however, considerable interest in the stock, with over 6 Million shares traded on the stock exchange. More than 70 million shares were traded at the end of the trading session.
Uber, a competitor of Lyft, is expected to file for IPO late this spring after presenting its bid on the same day as Lyft in December. Postmates, Slack, and Pinterest, also submitted IPO applications. Uber is expected to publish its S-1 application and become public in April.
“Lyft is hitting Dom Pérignon, but the way the shares will be traded in the coming months and especially after the publication and announcement of Uber will be the real test in our opinion,” said Dan Ives, Wedbush managing director.
The shares are traded on the Nasdaq under the symbol LYFT. J.P. Morgan, Jefferies, and Credit Suisse were the main insurers of the offer. Lyft has been nominated three times on CNBC’s list of 50 disrupters and was fifth on the 2018 listing. San Francisco-based transportation network company, however, is yet to conclude how it plans to make profits, after this IPO kick.