Tech titans soar after listing in New York

TWO heavyweight US technology companies soared on their first day of trading on the stock market in New York – proving the appetite for new listed companies is still very much alive.

After taxi app Lyft flopped following its initial public offering in March, investors were holding their breath to see whether Pinterest and Zoom Video Communications would follow suit.

But as trading in New York began, shares in Pinterest, which allows users to create online moodboards on themes from interior design to hairstyles, soared more than 27pc.

Its stock was still above $24 in the evening, way above the $19 offer price, giving it a market value of £9.8bn.

Zoom, a video conferencing business, got off to an even better start as its shares rocketed more than 80pc in the first few minutes of trading.

They later settled around $64, up from the offer price of $36, taking its value to just over £12.5bn.

Pinterest’s founders now own stakes worth millions of pounds. Chief executive Ben Silbermann, 36, has held on to the most shares – he owns 51.6m, which are worth more than £920m.

Zoom’s China-born founder Eric Yuan, 49, who was refused a US visa eight times, now holds shares worth more than £2bn in his company. He and his family have already sold stock worth £44m during the IPO.

The two successful floats will have come as a relief for investors who decided to take a punt on them. Lyft caused a stir when it hit the stock market last month, but the hype proved to be short-lived. Its shares have slumped almost 20pc from the $72 offer price to around $58.

Taxi app Uber presents the next challenge for investors, as it is set to float next month.

Seeking a massive $100bn valuation, traders are already betting on whether it will follow in the footsteps of its rival Lyft, or exceed expectations.