Lyft has raised the price range for shares in its initial public offering, raising the US ride-hailing company’s prospective valuation to more than $24bn.
The company set a new range of $70 to $72 a share in an amended regulatory filling, both higher and narrower than the $62 to $68 range it had previous indicated, reflecting robust appetite for the first big US technology IPO in two years.
The new range pushes Lyft’s potential valuation, at the top of the range and on a fully diluted basis, to $24.3bn from its earlier maximum of $22.9bn.
Lyft now expects to see net proceeds of approximately $2.1bn at the midpoint of its range, up from $1.9bn with the old range, and rising to as much as $2.4bn if the underwriters exercise their purchase options.
Executives and bankers told investors at its roadshow marketing blitz this week the company expected to price the shares higher than the original range because of strong demand. Demand had already exceeded the 30.8m of shares on offer by the second day of the roadshow last week, bankers told attendees.
Lyft is expected to finalise pricing its offer on Thursday. The shares are set begin trading on Nasdaq on Friday.