Pinterest’s price causes worry
Pinterest has set an IPO range that values the networking site at as much as $11.3 billion – a lower valuation than it had two years ago and a potential concern to investors.
The company, which allows users to discover images for cooking, fashion and design, expects to sell 75 million shares for $15 to $17 apiece, according to a filing Monday with the U.S. Securities and Exchange Commission. The initial public offering, expected next week, could raise as much as $1.2 billion.
The high end of the IPO range, including stock options and restricted stock, values the company at $11.3 billion. That number stood at $12 billion in 2017, after its last private funding round. The decline might worry investors and chill demand for tech stocks as other Silicon Valley companies move closer to their IPOs.
“There is a stigma attached to coming to market with a down round, whether it’s in the private market or the public market, because it undermines confidence,” said Nicole Tanenbaum, chief investment strategist at Chequers Financial Management. “This has certainly changed the landscape and created some concern for the future tech IPOs to come.”