Pinterest valued at $12.7 billion in IPO
NEW YORK: Pinterest Inc’s initial public offering set the online scrapbook company’s valuation at $12.7 billion on Wednesday, above its expectations and a sign of strength for the tech IPO market after Lyft Inc’s struggles. Pinterest, where users save ideas for clothes, décor and recipes, is due to start trading on the New York Stock Exchange on Thursday. Its performance will be a key test of the tech IPO market after the Nasdaq debut of ride-hailing start-up Lyft at the end of last month.
Lyft raised more than it had set out to do when it went public, but shares have dropped around 17 per cent from its IPO price, raising concerns about bigger rival Uber Technologies Inc when it prices its IPO next month.
A key difference between Pinterest and Lyft however were their valuation expectations. Lyft, which lost $911 million last year, was seeking a valuation of up to $24.3 billion in its IPO, higher than the $15 billion valuation it attained in its latest private fundraising round in 2018. Pinterest lost $63 million in 2018.
Pinterest’s initial $15-$17 per share target range target range had set it on course to be valued below its last private fundraising valuation of $12.3 billion in 2017.
At $19 per share, Pinterest, which offers advertisers a venue to sell to consumers, raised around $1.4 billion at a roughly $12.7 billion valuation.
Pinterest will trade under the symbol “PINS”. Goldman Sachs & Co LLC, Jpmorgan and Allen & Company are the lead underwriters on the Pinterest IPO. — Reuters