WASHINGTON (dpa-AFX) - Ride-hailing service Lyft Inc. disclosed in a regulatory filing that it now estimates pricing initial public offering of about 30.77 shares between $70 and $72 per share. Previously, it was expected to price initial public offering between $62 and $68 per share.
The company estimates that the net proceeds from the sale of shares of Class A common stock in this offering will be approximately $2.1 billion or about $2.4 billion if the underwriters' option to purchase additional shares of Class A common stock is exercised in full), based upon the assumed initial public offering price of $71.00 per share, which is the midpoint of the estimated offering price range, and after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by the company.
The company intends to use the net proceeds from this offering for general corporate purposes, including working capital, operating expenses and capital expenditures. It also intends to use a portion of the net proceeds to satisfy anticipated tax withholding and remittance obligations related to the settlement of certain of outstanding restricted stock units, or RSUs.
Additionally, the company may use a portion of the net proceeds to acquire or invest in businesses, products, services or technologies.
Upon the completion of this offering, Logan Green, co-founder, Chief Executive Officer and a member of board of directors, will hold approximately 29.31% of the voting power of our outstanding capital stock; and John Zimmer, our co-founder and President and Vice Chairman of our board of directors, will hold approximately 19.45% of the voting power of our outstanding capital stock. Our Co-Founders, individually or together, will have the ability to significantly influence the outcome of matters submitted to our stockholders for approval, including the election of directors, amendments of our organizational documents and any merger, consolidation, sale of all or substantially all of our assets or other major corporate transactions.
Lyft plans to trade on the Nasdaq under the ticker symbol 'LYFT.'
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