Lyft drops a few IPO details
IPO season is approaching
March 18, 2018
Lyft, the ride-hailing service often overshadowed by Uber, is expected to beat its rival to an initial public offering (IPO).
If you have no idea what the hell an IPO is, I'll help you out a little bit and give you the quick rundown.
When companies are first started, they're considered private because they're owned by a select group of people — like founders, investors, and early employees. Once a company goes public, it begins to sell its shares on the stock exchange, and anyone in the public can buy part ownership (that's why they're considered public companies). Companies usually go public because it allows them to raise a lot more money by selling their shares.
All that to say: Lyft beating Uber to an IPO is a pretty significant, especially considering the difference in sizes between the two companies.
Lyft plans to offer 30.77 million shares to the public at a price between $62 and $68, meaning the company could raise over $2 billion.
In 2018, Lyft brought in $2.2 billion in revenue, which was double the amount it made in 2017.