Market Overview

The Lyft IPO: What You Need To Know

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The Lyft IPO: What You Need To Know

In the race to the U.S. markets, Lyft is about to lap Uber and other ride-hailing rivals.

The Offering

According to Lyft’s amended S-1 filing, the company will issue 30.77 million shares between $62 and $68 on the Nasdaq under ticker "LYFT."

A source familiar with the matter told Benzinga Lyft's IPO will price in the $70-$72 per share range. (Editor's note: A Wednesday afternoon filing confirmed this updated range.)

Lead underwriters include JPMorgan Chase & Co., Credit Suisse and Jefferies Financial Group. As of last week, Lyft had already scored a bullish analyst rating from D.A. Davidson and had been packing rooms in its investor roadshow.

Lyft qualifies as an emerging growth company under the U.S. JOBS Act, which exempts management from certain SEC disclosure requirements.

The Company

Lyft claims the No. 2 spot in ride-hailing after growing its market share from 22 percent in 2017 to 39 percent today. Management closed 2018 with 30.7 million riders and 1.9 million drivers.

The firm boasts more than 1 million rides daily in its 300 North American markets with an average rating of 4.8 stars.

It supports its driver network with Express Drive vehicle rental, English language courses, and local Driver Advisory Councils. Management will introduce 45 new councils by the end of April.

Lyft has partnered with the likes of Hertz Global Holdings Inc (NYSE: HTZ), JetBlue Airways Corporation (NASDAQ: JBLU), salesforce.com, inc. (NYSE: CRM) and Tapestry Inc (NYSE: TPR) as the companies’ preferred ride-share service.

The Finances

Last year, Lyft recorded $8.05 billion in bookings and $2.16 billion in revenue, notching significant growth over 2017’s $4.59 billion in bookings and $1.06 billion in revenue.

That surge didn’t prevent a $911 million loss. Lyft’s loss become the largest reported by any U.S. startup in the year leading up to IPO, according to S&P Global Market Insurance.

To abate concerns over its profitability, management cited plans to cut expenditures by lowering insurance costs and, in the long term, adopting autonomous vehicles.

Related Links:

Economist: Lyft Has Better Path To Profitability Than Uber, But Concerns Remain

Recode Editor: Uber, Lyft's Business 'Tough Going From A Financial Point Of View'

Photo courtesy of Lyft.

Posted-In: Lyft UberNews Previews IPOs Top Stories Trading Ideas Best of Benzinga

 

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