Pinterest Inc raised around US$1.4 billion in its initial public offering (IPO), fetching a roughly US$12.66 billion valuation, above its expectations, Reuters reports.
Pinterest, the online scrapbook where users save ideas for clothes, décor and recipes, said it priced 75 million shares for its IPO at US$19 per share, above its US$15-US$17 target range.
Its performance will be a key test of the tech IPO market after the stock market debut of ride-hailing start-up Lyft Inc at the end of last month.
Lyft shares have dropped around 17 percent from its IPO price, raising concerns about bigger rival Uber Technologies Inc when it prices its IPO next month.
A key difference between Pinterest and Lyft, however, concerns their valuation expectations. Lyft was seeking a valuation of up to US$24.3 billion in its IPO, higher than the US$15 billion valuation it attained in its latest private fundraising round last year.
Before the IPO, Pinterest had been weighing a valuation at or near its last private fundraising in 2017, when it was valued at US$12.3 billion.
Lyft’s losses last year at US$911 million also dwarfed the US$63 million loss of Pinterest.
Pinterest was due to start trading on the New York Stock Exchange on Thursday under the symbol “PINS”.
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