Published On: Thu, Apr 18th, 2019

Pinterest raises $1.4 billion in IPO in sign of sustained demand after Lyft struggles

Share This

FILE PHOTO: A Pinterest banner hangs on the facade of the NYSE in New York
FILE PHOTO: A Pinterest banner hangs on the facade of the New York Stock Exchange (NYSE) in New York City, U.S., September 22, 2017. REUTERS/Brendan McDermid/File Photo

April 18, 2019

By Joshua Franklin

NEW YORK (Reuters) – Pinterest Inc said on Wednesday it raised around $1.4 billion in its initial public offering (IPO), fetching a roughly $12.66 billion valuation, above its expectations.

Pinterest, the online scrapbook where users save ideas for clothes, décor and recipes, said it priced its initial public offering at $19 per share, above its $15-$17 target range.

Its performance will be a key test of the tech IPO market after the stock market debut of ride-hailing start-up Lyft Inc at the end of last month.

Lyft shares have dropped around 17 percent from its IPO price, raising concerns about bigger rival Uber Technologies Inc when it prices it IPO next month.

A key difference between Pinterest and Lyft however were their valuation expectations. Lyft was seeking a valuation of up to $24.3 billion in its IPO, higher than the $15 billion valuation it attained in its latest private fundraising round in 2018.

Before the IPO, Pinterest had been weighing a valuation at or near its last private fundraising in 2017, when it was valued at $12.3 billion.

Lyft’s losses last year at $911 million also dwarfed the $63 million loss of Pinterest.

In the IPO, Pinterest priced 75 million shares at $19 per share, above its $15-$17 target range and ending up attaining a higher valuation.

Pinterest is due to start trading on the New York Stock Exchange on Thursday under the symbol “PINS”.

Goldman Sachs & Co LLC, JPMorgan and Allen & Company are the lead underwriters on the Pinterest IPO.

(Reporting by Joshua Franklin in New York; Editing by Lisa Shumaker)

Source link

About the Author