Lyft shares surge over 20% in market debut

Lyft co-founder and chief executive Logan Green (C) and co-founder and president John Zimmer Image copyright Reuters
Image caption Lyft co-founder and chief executive Logan Green (C) and co-founder and president John Zimmer (L) are multi-millionaires following the flotation

Shares in Lyft have jumped by 21% after the ride hailing company listed its shares on the Nasdaq stock exchange in New York.

The company’s stock rose from a starting price of $72 each to $87.24, valuing Lyft at $28.2bn.

The initial public offering (IPO) has made multi-millionaires of the seven year old company’s founders, Logan Green and John Zimmer.

Their combined stake in Lyft is worth more than $1bn.

Lyft is yet to make a profit and reported widening losses of $911m last year compared to $688m in 2017 despite revenues rising to $2.1bn.

The IPO is seen as a litmus test for a number of technology flotations that are expected this year, including Lyft’s bigger rival Uber which could be valued at as much as $120bn when it lists its shares.

Lyft is raising $2.3bn which it plans to use for operating costs as well as making investments in acquisitions and technology.

At the float price, Mr Green’s stake is worth around $600m while Mr Zimmer’s is valued at $415.8m.

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