NEW YORK (Reuters) – Lyft Inc. ‘ s initial public offering (IPO) is oversubscribed on the basis of the commitments made so far by investors, making it more likely that the ride-hailing startup will reach or even exceed the $23 billion valuation is looking for people familiar with the matter said on Tuesday.
FILE PHOTO: A car with a Lyft logo in the screen stations in a street as the company prepares for its upcoming IPO in New York, USA, March 19, 2019. REUTERS/Lucas Jackson/File Photo
The development indicates that many investors are willing to overcome the uncertainty about Lyft the road to profitability and its strategy for autonomous driving, for fear of missing the largest and most high-profile technology IPO since Snap Inc in 2017.
Lyft started its IPO road show on Monday and has spent the last two days meeting with investors in New York, the sources said. It has an indicative IPO price range of $62 to $68 per share and is set to price the IPO on March 28.
The exact level of oversubscription can not be learned. The sources warned that the IPO price is still uncertain, and they asked not to be identified because the matter is confidential.
Lyft declined to comment.
Lyft of the progress in the IPO may bode well for larger rival Uber Technologies Inc, that is the planning for the kick-off of the IPO in April, Reuters reported. It was valued by investment bankers to as much as $125 billion.
Lyft said on Monday it aims to raise up to $2 billion in its initial public OFFERING on a fully-diluted valuation of as much as $23 billion, of which restricted stock.
There will be more meetings in Boston and New York this week between the investors and the co-founders logan green and John zimmer, as well as Chief Financial Officer, Brian Roberts and Catherine Buan, vice president of investor relations.
Lyft is pitching investors on the simplicity of his company, while Uber is expected to play a more diversified strategy, according to the sources.
Rob Lutts, chief investment officer of Cabot Wealth Management in Salem, Massachusetts, said the transition to autonomous vehicles would be “destructive” for Lyft and found the company’s IPO documents don’t offer many details about the plans.
“I’m not sure if they have figured out what they are going to do. It is too early for that,” Lutts said.
Reporting by Joshua Franklin in New York; Additional reporting by Ross Kerber in Boston and Carl O’donnell in New York; Editing by Phil Berlowitz and Susan Thomas