Ride-hail­ing firm Lyft files for IPO ahead of ri­val Uber

Business Daily (Kenya) - - CORPORATE NEWS -

Ride-hail­ing com­pany Lyft Inc beat big­ger ri­val Uber Tech­nolo­gies in fil­ing for an ini­tial pub­lic of­fer­ing that will test in­vestor ap­petite for high-profile but loss-mak­ing tech­nol­ogy com­pa­nies.

The com­pany, which was last val­ued at about $15 bil­lion (Sh1.5 tril­lion), did not spec­ify the number of shares it was sell­ing or the price range for the of­fer­ing in a con­fi­den­tial fil­ing with the SEC.

The IPO is slated for the first half of 2019, sources have told Reuters. Uber is ex­pected to pur­sue an IPO next year that could value it at about $120 bil­lion (Sh12 tril­lion), while home-rent­ing com­pany Airbnb Inc, val­ued at $31 bil­lion (Sh3.1 tril­lion), is also ex­pected to list it­self in 2019.

High-profile tech uni­corns dom­i­nated the US IPO land­scape this year. Drop­box Inc was val­ued at nearly $13 bil­lion (Sh1.3 tril­lion) in its March de­but.

But the re­cent tur­moil in the fi­nan­cial mar­kets due to es­ca­lat­ing trade ten­sions be­tween the United States and China could dampen in­vestor en­thu­si­asm for the much-awaited tech IPOS.

Uber and Lyft’s IPOS are widely seen as a lit­mus test for in­vestor tol­er­ance for lack of prof­itabil­ity when it comes to iconic tech­nol­ogy uni­corns.

The two com­pa­nies have taken hits to their bot­tom lines in or­der to at­tract driv­ers and en­ter new mar­kets, although they have made strides in re­cent years in nar­row­ing their losses.

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