Ride-hailing startup Lyft on Wednesday raised the price range for its initial public offering to between US$70 and US$72 per share, from US$62-$68 previously, amid strong demand for the stock.
The new price range means the company is now targeting a valuation of up to US$24.3 billion, Reuters reports.
At the mid-point of its new target range, US$71 per share, Lyft would raise roughly US$2.1 billion for its Nasdaq listing.
The increased price range signals a healthy appetite for new stocks after jeans maker Levi Strauss & Co last week priced its targeted range and popped on its market debut, the report noted.
It also indicates many investors are willing to overlook uncertainty over Lyft’s path to profitability and its strategy for autonomous driving, for fear of missing out on such a high-profile tech IPO.
Lyft’s IPO was oversubscribed just two days into its investor roadshow, Reuters reported last week.
At the upper end of the new range, Lyft would have a market capitalization of US$20.45 billion, a little larger than Snap when it went public in 2017.
Counting for things like restricted stock options, Lyft’s valuation would be as high as US$24.3 billion. Lyft was valued at US$15 billion in final private fundraising round in 2018.
The strong investor interest in Lyft bodes well for the likes of Uber Technologies and Pinterest, which are also planning to go public in 2019 but like Lyft have yet to turn a profi, Reuters noted.
Lyft’s IPO is set to price on Thursday and the shares are scheduled to begin trading a day later.
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