The co-founders of ride-sharing service, Lyft took the company public and celebrated by ringing the opening bell of the NASDAQ Friday morning in Los Angeles, the company’s biggest market. (March 29)
Lyft Inc. shares dropped more than 10 percent Monday, falling to about $69 apiece after the ride-hailing company’s initial public offering sold at $72 a share last week.
The company went public on Friday when its stock traded for the first time under the ticker “LYFT” on the Nasdaq index.
The stock closed at $78.29 on Friday, up 8.7 percent from its offering price. Shares had surged as high as $88.60 on their first trading day.
The company’s IPO was highly anticipated as a potential bellwether for other major tech companies that are lining up to go public sometime this year, including Lyft’s major rival Uber, according to market analysts.
“This is a lightning start for Lyft’s stock,” Daniel Ives, managing director of equity research at Wedbush Securities, had written Friday in an email. “The robust start to trading is also a clear positive for other tech names that are watching Lyft to gauge investor demand.”
One of its biggest investors General Motors is expected to have won big. The automaker invested $500 million in Lyft in January 2016 and holds 18.6 million Class A shares of the company.
In a regulatory filing Thursday, Lyft said it would raise $2.3 billion with the offering price at $72 per share. The company plans to use the proceeds for working capital, operating expenses, capital expenditures, future acquisitions and investments in new products, services or technologies.
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Contributing: Janna Herron
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