By Carl O’Donnell and Joshua Franklin
(Reuters) – Lyft Inc was valued at $24.3 billion (£18.6 billion) in the first initial public offering (IPO) of a ride-hailing startup on Thursday, raising more than it had set off to do amid strong investor demand, according to people familiar with the matter.
Lyft’s IPO sets the stage for the stock market debut of larger rival Uber Technologies Inc, which sources have said is coming in April. Uber has been told by its investment bankers that it could be valued at as much as $120 billion.
Lyft priced its shares at $72, the top of its already elevated $70-$72 per share target range, the sources said. Lyft had began its IPO investor road show earlier this month with a target range of $62-$68 per share.
The success of the IPO indicates many investors were willing to overlook uncertainty over Lyft’s path to profitability and its strategy for autonomous driving, for fear of missing out on Lyft’s strong revenue growth.
(Reporting by Carl O’Donnell and Joshua Franklin in New York; editing by Grant McCool)