Pinterest’s initial public offering (IPO) set the online scrapbook firm’s valuation at $12.7 billion on Wednesday, above its expectations and a sign of strength for the tech IPO market after Lyft’s struggles.
Pinterest, where users save ideas for clothes, décor and recipes, was due to start trading on the New York Stock Exchange on Thursday. Its performance will be a key test of the tech IPO market after the Nasdaq debut of ride-hailing firm Lyft in March-end.
Lyft raised more than it had set out to when it went public, but shares have dropped around 17 per cent from its IPO price, raising concerns about bigger rival Uber Technologies when it prices its IPO next month.
A key difference between Pinterest and Lyft, however, were their valuation expectations. Lyft, which lost $911 million last year, was seeking a valuation of up to $24.3 billion in its IPO, higher than the $15 billion valuation that it had attained in its latest private fundraising round in 2018. Pinterest lost $63 million in 2018.