Lyft seeks to raise up to RM8.6b in US listing

SAN FRANCISCO • Lyft Inc is seeking to raise as much as US$2.1 billion (RM8.56 billion) in its initial public offering (IPO), valuing the firm at up to US$19.6 billion based on the total number of shares outstanding after the offering.

The No 2 US ride-hailing giant is offering 30.8 million shares at US$62 to US$68 each, it said in a regulatory filing yesterday.

At the targeted range, the San Francisco-based company’s offering will be the biggest from a tech upstart since Snap Inc went public two years ago, and the largest in the US so far this year after the partial US government shutdown put a damper on first-quarter listings.

Lyft had earlier been aiming for a market valuation of US$20 billion to US$25 billion, a person familiar with the matter said in February.

The filing to the US Securities and Exchange Commission (SEC) puts Lyft further ahead in its race to go public with Uber Technologies Inc, the world’s biggest ride-hailing firm. Uber has filed confidentially with the SEC and intends to make its listing plans public in April, according to people familiar with the matter.

Smaller start-ups including Postmates Inc and Slack Technologies Inc are also considering listings.

Uber could be valued at as much as US$120 billion in an IPO, people familiar with its plans have said previously, likely making its offering one of the top five of all time.

Lyft warned in its filing that expenses are likely to increase and that it may not be able to “achieve or maintain profitability in the future”.

While Uber is pursuing food and freight delivery, scooters, electric bikes and even flying cars, Lyft remains focused on transportation, including bikes and scooters.

The new filing spells out how much of Lyft will be controlled by co-founders Logan Green and John Zimmer once the company is public.

The two will be issued Class B shares, which will equal the voting rights of 20 ordinary shares.

The offering is being led by JPMorgan Chase & Co, Credit Suisse Group AG and Jefferies Financial Group Inc, with more than two dozen other banks participating.

Lyft has applied to list shares on the Nasdaq Global Market under the symbol “LYFT”. — Bloomberg