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

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.

Reuters April 18, 2019 06:05:16 IST
Pinterest raises $1.4 billion in IPO in sign of sustained demand after Lyft struggles

Pinterest raises 14 billion in IPO in sign of sustained demand after Lyft struggles

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)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Hong Kong marks handover anniversary as national security law takes effect
World

Hong Kong marks handover anniversary as national security law takes effect

HONG KONG (Reuters) - Hong Kong authorities threw a security blanket across the city early on Wednesday, the 23rd anniversary of the former British colony's handover to Chinese rule, hours after new national security legislation took effect in the financial hub. The contentious law will punish crimes of secession, subversion, terrorism and collusion with foreign forces with up to life in prison, heralding a more authoritarian era for China's freest city.

Kentucky Democrats pick ex-fighter pilot McGrath to challenge U.S. Senate leader McConnell
World

Kentucky Democrats pick ex-fighter pilot McGrath to challenge U.S. Senate leader McConnell

By Susan Cornwell (Reuters) - Former fighter pilot Amy McGrath said on Tuesday she was ready to take on Senate Republican Majority Leader Mitch McConnell after edging out a Black progressive to clinch the Democratic nomination for the seat.

World shares end stellar quarter but still down in 2020
Business

World shares end stellar quarter but still down in 2020

By Rodrigo Campos NEW YORK (Reuters) - A global stocks index rose on Tuesday and marked its largest quarterly gain since 2009 as investors continued to look for signs of an economic recovery while shrugging off data showing a rising number of COVID-19 cases. The possible return of Libyan oil production, which has been at a trickle since the start of the year, weighed on crude prices. World shares rose 18.7% this quarter, the biggest quarterly gain in 11 years, but are still down more than 7% so far this year due to a slump of 34% between Feb.