One of the two biggest ride-hailing companies in the U.S. could be the first unicorn, listed in 2019. Lyft was valued at $15.1 billion on the private markets and is expected to be valued between $20 and $25 billion in its IPO.
The roadshow, where the company will meet with investors, is scheduled for the second half of March and will be traded on Nasdaq, Bloomberg said, referring to people, familiar with the matter.
Lyft goes public first, followed by its larger rival, Uber. For Lyft it is an opportunity to reduce the risk of being overshadowed by Uber and being judged by the valuation of its competitor.
Uber is seeking a valuation of about $120 billion. The company is heavily expanding in different markets such as food delivery, shipping and electric scooter rentals. This diversity and the fact that Uber is the most highly-value added U.S.-based startup might whet investors’ appetites, making them less attentive to Uber’s financial and PR performance. Over the past few years, Uber has been involved in a never-ending string of scandals from sexual harassment, gender discrimination and the resignation of its CEO, Travis Kalanick.
Despite optimism for the two biggest upcoming IPOs, investors should thoroughly look at IPOs that took place in 2018 and the performance of the tech companies that went public. Almost all recently listed tech firms have been overvalued by the market.
Sonos, an American consumer electronics company, has likely become the biggest disappointment for investors with shares dropping by almost 50 percent since its IPO. The best performing company is Chinese Tencent, which specializes in Internet-related services. Shares are up 18 percent, but this has nothing to do with the U.S. tech market. China’s vast population and increasing number of internet users has become the driving force for the company.