Pin­ter­est’s price causes worry

The Buffalo News - - BUSINESS NEWS -

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.”

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.