Lyft raises price target as investors fear missing out on the biggest IPO in years

FILE PHOTO: The Lyft logo is seen on the ride-hailing car in Manhattan, New York City, New York, USA, March 4, 2019. REUTERS/Mike Segar/File Photo

(Reuters) – Lyft, Inc. (“LYFT.O) on Wednesday raised the price range for the ipo is between $70 and $72 per share, which means that the ride-company is now targeting a rating of 24.3 billion.

The increase in the range of $62-$68 previously, is the result of the IPO is oversubscribed and is a further indication that investors do not want to miss out on the biggest AMERICAN IPO in years.

Lyft, the IPO was oversubscribed just two days into its investor roadshow, Reuters reported last week. [nL1N2161HD]

At the top of the new range, Lyft would be a market cap of $20.45 billion, a bit bigger than Snap, Inc. (“MODULE.N) when it went public in 2017. At this size, it would be the largest AMERICAN IPO since the Chinese e-commerce Alibaba Group in 2014.

In the middle of its new target range, $71 per share, Lyft would raise about $2.1 billion.

The higher price gives a lot of investors are willing to look uncertainty about Lyft the road to profitability and its strategy for autonomous driving, for fear of missing such a high-profile technology IPO.

Lyft a revenue of $2.16 billion for 2018, double the previous year and much higher than $343 million in 2016. It posted a loss of € 911 million in 2018, against $688 million in 2017.

The progress of the company in its IPO may bode well for larger rival Uber Technologies Inc. [UBER.UL], which is planned to be the kick-off of the IPO in April, Reuters reported. It was valued by investment bankers to as much as $120 billion.

Lyft, the IPO is set to price on Thursday, with shares scheduled to begin trading on the Nasdaq on Friday.

Reporting by Joshua Franklin in New York and Diptendu Lahiri in Bengaluru; Editing by Anil D’silva and Lisa Shumaker

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