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Lyft files confidential plans for an IPO

Lyft has taken a long-expected step toward going public. The ride-hailing service filed a confidential IPO p...

Posted: Dec 6, 2018 2:06 PM
Updated: Dec 6, 2018 2:07 PM

Lyft has taken a long-expected step toward going public. The ride-hailing service filed a confidential IPO proposal to the SEC Thursday.

The company said it has not yet made key decisions about the number of shares it will offer or the price of its stock. If market conditions are right, Lyft said it anticipates an IPO after the SEC competes a review process.

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Initial public offering

Lyft

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Sharing and on-demand economy

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Uber

Lyft's most recent round of private investments valued the company at $15 billion. Lyft said in June its most recent funding round, led by Fidelity, more than doubled the estimated value of the company from just 14 months earlier.

Lyft and competitor Uber are two of the largest and fastest growing privately-held companies in the country. Their IPOs have been anticipated for years.

Uber has plans to go public as well sometime in 2019. According to one report in the Wall Street Journal, Wall Street banks estimate Uber's IPO could fetch $120 million. Uber's most recent round of investments value it at $70 billion.

As a private company, Lyft has not disclosed its financial results. The 2012 JOBS Act allows companies with less than $1 billion in annual revenue to start the IPO process without making public disclosures, although it will have to release results as it prepares to meet with investors to discuss the actual sale of shares, a process known as a "roadshow."

Uber has already started releasing its financial results despite being a private company. It lost $1.1 billion in the three months ending in September, on revenue of $3 billion.

The ride-hailing companies need to go public to build up capital while losses mount and they continue to develop expensive self-driving car technology. The potential to shake up the traditional global auto industry makes them both attractive to potential investors.

General Motors made a $500 million investment in Lyft in January 2016, when it was a much smaller company. Uber recently announced a $500 million investment from Toyota. Both of those automakers are announcing cost cuts to raise the cash they need to develop self-driving and electric cars and to compete with the ride-sharing services.

The market has been extremely volatile lately, making now a difficult time for IPOs. For example, Tencent Music, the leading music streaming service in China, recently announced plans for a US IPO to raise as much as $1.2 billion, but that was a fraction of the $2 billion it had earlier hoped to raise. And stocks are in the midst of their worst fourth quarter since the meltdown in financial markets a decade ago.

But the Lyft filing doesn't lock it into any specific timing if the market gets too rough. It just allows Lyft to get the process going so it's ready once it decides it is the right time for an offering.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 517138

Reported Deaths: 10306
CountyCasesDeaths
Harrison35086559
DeSoto33512432
Hinds32826644
Jackson24938392
Rankin22621405
Lee16564245
Madison14986283
Jones14195248
Forrest13865260
Lauderdale12343323
Lowndes11401193
Lamar10715140
Pearl River9762244
Lafayette8898143
Hancock7854132
Washington7562169
Oktibbeha7246138
Monroe7106179
Pontotoc7071110
Warren6915179
Panola6815136
Neshoba6762210
Marshall6751142
Bolivar6484151
Union647099
Alcorn5969108
Pike5953157
Lincoln5550136
George511380
Prentiss511086
Tippah498483
Itawamba4916107
Scott479599
Tate4790118
Adams4789125
Leflore4765144
Copiah458995
Simpson4587117
Yazoo458692
Wayne444372
Covington435895
Sunflower4338106
Marion4313112
Coahoma4263111
Leake414491
Newton396482
Tishomingo390294
Grenada3799109
Stone366466
Attala342290
Jasper341667
Chickasaw320867
Winston319092
Clay314378
Clarke302095
Calhoun289550
Holmes273789
Smith271452
Yalobusha246547
Tallahatchie233153
Greene225549
Walthall222266
Lawrence221142
Perry214656
Amite210657
Webster207248
Noxubee188943
Montgomery182857
Carroll176341
Jefferson Davis175043
Tunica164139
Benton153539
Kemper145641
Choctaw138027
Claiborne134939
Humphreys132639
Franklin127130
Quitman107928
Wilkinson106539
Jefferson97334
Sharkey65321
Issaquena1957
Unassigned00

Alabama Coronavirus Cases

Cases: 849409

Reported Deaths: 16199
CountyCasesDeaths
Jefferson1165042004
Mobile744951384
Madison53605739
Shelby38474373
Baldwin38236590
Tuscaloosa36225644
Montgomery34599784
Lee25712264
Calhoun22652520
Morgan22569411
Etowah20084521
Marshall18878318
Houston17806426
St. Clair16987359
Limestone16220222
Cullman16183306
Elmore15967295
Lauderdale15126308
Talladega14275302
DeKalb13099271
Walker12202380
Blount10803193
Autauga10566157
Jackson10237196
Coffee9447192
Colbert9396210
Dale9052192
Tallapoosa7291202
Russell711965
Chilton7101171
Covington6985197
Escambia6972146
Franklin6379108
Chambers5815142
Marion5451132
Dallas5307210
Pike5135109
Clarke485986
Lawrence4857130
Winston4804111
Geneva4658137
Bibb436795
Barbour370880
Butler3446101
Marengo342593
Monroe338666
Randolph338567
Pickens335590
Fayette332785
Henry321566
Cherokee321264
Hale320289
Crenshaw262278
Washington256952
Cleburne255460
Lamar253755
Clay253169
Macon246667
Conecuh193962
Coosa186248
Lowndes178468
Wilcox178338
Bullock152845
Perry141940
Sumter139841
Greene130845
Choctaw94928
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