Lyft is reportedly seeking to raise $2 billion through its IPO
Lyft may debut in public markets as early as next week, according to The Wall Street Journal. The ride-hailing company is reportedly seeking a valuation of $21 billion–$23 billion.
Lyft expects to raise ~$2 billion, valuing its shares at $62–$68 each. Lyft is Uber’s biggest US competitor, and the two have been playing a game of cat and mouse for their IPOs. Lyft filed the necessary paperwork to go public in December, almost immediately after Uber filed it. However, while Lyft has filed its Form S-1, Uber hasn’t.
Lyft’s revenue is growing quickly but is still in the red
Whereas Uber’s revenue growth is slowing, Lyft’s is surging. Lyft’s revenue more than doubled year-over-year last year, to $2.2 billion. However, neither company has been able to rein in on losses. Lyft posted a net loss of $911 million last year.
One of the biggest beneficiaries of Lyft’s IPO hype may be Japanese e-commerce giant Rakuten (RKUNY). While its core business is slowing, the stock has gained 35% this year because it has a 13% stake in Lyft. Other Lyft stakeholders are General Motors (GM), which owns ~7.8% of the company, and Google parent Alphabet (GOOG), which has a 5.3% stake.