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Lyft Files Papers With the SEC For an IPO
Lyft announced that it has filed a a draft registration statement with the U.S. Securities and Exchange Commission for its highly anticipated initial public offering (IPO).
In its confidential filing with the SEC, the ride-hailing company said that the number of shares being offered and the price range have not yet been determined. It also hasn’t set a date for the IPO, although sources have told Reuters that it’s expected in the first half of 2019.
Investors have seen Lyft, which is valued at about $15 billion, as being in a race with its main rival Uber to see who would file for an IPO first. Uber is expected to file for an IPO next year as well, which could value it at roughly $120 billion, according to Reuters.
Lyft was one of seven startups to raise more than $500 million last year, along with Airbnb and WeWork. Airbnb, which is valued at about $31 billion, is also expected to go public in 2019, while WeWork has been taking in massive funding from SoftBank’s Vision Fund.
Reuters notes that Lyft and Uber’s IPOs “are widely seen as a litmus test for investor tolerance for lack of profitability when it comes to iconic technology unicorns.”
The two companies have taken hits to their bottom lines in order to attract drivers and enter new markets, although they have made strides in recent years in narrowing their losses.
“The ‘cab-hailing-system’ has been antiquated and left as a dinosaur of yester-years. The good news for ride-sharing is that it’s a market that has shown to be penetrable,” said Jeff Zell, senior research analyst and partner at IPO Boutique in Florida.
“With autonomous cars on the horizon, it is anyone’s guess where this sector goes in the future. But Uber and Lyft, as name-brand leaders, are leading the race and will have the war-chest to be major players for years to come.”
Lyft’s IPO is expected to commence after the SEC completes its review process.