Lyft’s much anticipated IPO is here, and it’s massive. Wednesday night, the ride-hailing app confirmed it would be starting its price-per-stock at $72, which lasted about an hour into Nasdaq’s chaotic Friday morning. In the first few minutes of the app’s Wall Street debut, its stock rose over 21 per cent, with shares going for $87.24 each by mid-day.
The company, which has made over 30,000,000m shares available for purchase, is now valued at $30bn, up from its starting valuation of $24bn this morning. Even with shares going fast, Lyft co-founders have nothing to worry about. Both CEO Logan Green and president John Zimmer will remain in control of almost half of the voting shares, due to their “super-shares”, which give them 20 votes per share.
Besides the co-founders, Lyft’s biggest shareholders are now Rakuten, with $2.5bn worth of shares, GM with $1.5bn worth, and venture capital firm Andreessen Horowitz, with $1.2bn worth of the company’s stock.
Industry experts predict Lyft’s successful IPO will create more momentum for Silicon Valley tech start-ups. Lyft is the first company to go public in 2019 and is considered to be setting the bar for future tech trading debuts.
Lyft’s biggest competitor, Uber, is set to go public within the next couple of weeks. Although Lyft beat Uber to an IPO, Uber is currently valued at a whopping $120bn. Earlier this week, both Lyft and Uber experienced setbacks when contracted drivers began protesting and striking throughout California in response to slashed wages.