There are many companies which are trying their best to get ahead of its competitors by offering a high quality of services, but majority of these startup’s fail when they decide to go public. However, Lyft which is the second largest ride-sharing company is not one of them because according to recent reports it’s been found upcoming IPO of Lyft has been oversubscribed. Lyft a two days ago filed its necessary documents and said that it’s going to be a public company and start its IPO in next week, but now it seems like many investors are interested in buying this company’s shares and that’s why it’s been oversubscribed.
Earlier officials said that company is going to be listed on NASDAQ and they are expecting a valuation of $23 billion; now it seems like they will achieve that target pretty much smoothly. Lyft is planning to offer its shares for a price in the range of $62-68 to all general public. However, now the subscription to IPO has been thoroughly utilised, and people will need to pay a premium to buy Lyft’s shares.
There are many companies shares which went public with oversubscription which is an indication that people think that company will succeed in future. Lyft is facing fierce competition from its biggest rival Uber which is also going to be a public company in the next few weeks. The ride-sharing industry might look profitable, but it’s not since Lyft hasn’t recorded even a single amount of profit since its beginning and that thing is worrying some investors. Private investors have saved company many times from getting bankruptcy. Now it seems like they also want to bank some good money by selling their stake to general public at a hefty price. It will be interesting to see whether Lyft is going to become a successful company or not because Snapchat was also in the same phase when its shares got oversubscribed, but now that company is hardly giving a right amount of returns to its investors.