Lyft is planning to become a public company
Lyft, the world’s second-largest taxi company, has begun preparations for its initial public offering, Bloomberg reports citing familiar sources. According to the agency, the goal is an attempt to “win” from the main competitor – Uber.
According to sources, Lyft hired Class V Group LLC as an IPO advisor and plans to begin negotiations with banks in September, and to conduct the listing in March or April. They added that these terms have not been finally determined and can change.
“A variety of factors will determine whether Lyft will become public and when it happens, but we are focused on the development of our business, which continues to grow”, the official representative of the company said. She refused to comment on “rumors and speculation”.
The founder of Class V Group LLC did not respond to the request for comment at the time of publication.
Uber CEO Dara Khosrovshahi said that the company plans to conduct an initial placement in the second half of 2019. The new CFO of Nelson Chai, who will start work in September, noted in an interview that he would study the situation in Uber before deciding on an IPO.
Bloomberg notes that Lyft faced the need to take a “delicate decision” by determining the timing of the IPO. “Should it [Lyft] become public before Uber makes it, simultaneously with Uber or after? Having become the first, Lyft will be able to create an idea of similar companies, divert attention from a larger rival and attract investors’ money before Uber makes it. However, becoming the first, Lyft risks that investors will wait for its more valuable competitor, “the agency writes.