Lyft’s IPO price lifted 21% on the first day of trading.
Headquartered in San Francisco, Lyft is a challenging competitor to Uber, founded by Logan Green and John Zimmer in 2007. In fact, Lyft is a giant in the transportation network industry next to Uber.
Lyft succeeded in drawing attention in the industry by becoming the first ride-hailing company to go public. Under the ticker symbol “LYFT”, it started trading on NASDAQ by pricing its Initial Public Offering (IPO) at $72 a share, giving the company a valuation of around $24 Billion.
Lyft made its debut on the public market at $87.24 a share, lifting its offering price of $72 by 21%. Despite the fact that the company celebrated the defining moment in San Francisco, a large number of drivers serving both Uber and Lyft were on strike demanding for higher pay. In fact, they closed their apps and refrained themselves from working for the said companies.
Although the IPO of Lyft gained spotlight on the first day itself, the share price on the NASDAQ exchange closed at about $78, which was lower than its opening price of $87.24 per share.
However, Lyft started showing a low performance since its successful IPO.
Michael Olson, an Analyst of Investing Banking Company, Piper Jaffray said, “We believe Lyft will be both a catalyst and beneficiary of the growth of ridesharing and autonomous tech over the next 10+ years”.
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