Pinterest, the image search company, is planning to offer 75 million shares priced at $15 to $17, at its initial public offering expected next week. At this IPO price range, the company will be valued below its last private fundraising round about two years back.
This comes after Lyft’s (LYFT - Free Report) bumpy start to trading on the public markets. The ride sharing company priced its IPO at $72, surged more than 20% on debut but fell from there to trade below the IPO price. It led the parade of many highly valued tech start-ups rushing to go public this year.
Pinterest has 265 million monthly active users. It had revenues of $756 million and a net loss of $63 million, in 2018. Like many other technology companies that went public in recent years, Pinterest will also have dual class structure in which founders and early investors retain majority voting rights.
I recently spoke with Kathleen Smith, Chairman and co-founder of Renaissance Capital, a global IPO investment advisory firm, about the IPO wave, valuations and dual class structure. We also discussed the Renaissance IPO ETF (IPO - Free Report) which holds newly public companies.
The ETF has surged more than 30% this year, thanks to strong performance by some of its constituents like Okta (OKTA - Free Report) , Zscaler (ZS - Free Report) , Roku (ROKU - Free Report) and MongoDB (MDB - Free Report) .
Tune into the podcast to learn more.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>