Lyft Prices IPO in Bid to Raise Up to $2.1 Billion
Ride hailing service Lyft is one step closer to going public.
In a filing on Monday, Lyft said that it will price its shares between $62 and $68. At the top of the range, the company could raise $2.1 billion, paving the way for the company to grow its business with the new cash infusion. According to the filing, Lyft co-founders Logan Green and Josh Zimmer will still have plenty of control over the business and remain its biggest shareholders with 48.8% share ownership after the IPO.
Lyft is hoping that its company will be valued at $120 billion, CNBC is reporting, citing sources who claim to have knowledge of its discussions.
Lyft has established itself as one of the two biggest ride-hailing companies in the U.S. alongside Uber. So far, however, Lyft hasn’t posted a profit. The company believes its path to profitability is through ride-hailing and keeping its business focused on bringing people from one place to another. Uber, on the other hand, has been investing in other areas, like autonomous driving and logistics, to build its business.
Regardless, Lyft has said that in order for its business to grow, it might continue to take losses.
Lyft is expected to public on March 29, barring any unforeseen circumstances. It’ll go public under the ticker symbol LYFT.