Mario Tama/Getty Images
- Ride-sharing app Lyft has suffered through volatile trading since its March initial public offering.
- Shares have plunged 23% from their IPO price of $72, with investors recording paper losses.
- Watch Lyft trade live.
Lyft investors have had a rocky road since the initial public offering on March 29. The ride-sharing company’s shares are down 23%, well below the initial-public-offering price of $72, wiping nearly $5 billion off the company’s market cap.
These developments have important implications for the valuation of Uber’s IPO, widely expected to be the largest of 2019. Uber is expecting to go public as early as Friday.
While every Lyft investor who got in ahead of the IPO has seen their Lyft holdings decline in value, Markets Insider picked out eight to highlight.
To be clear, it is unclear at what price these investors originally purchased shares, and some or all could still be up significantly on their original investment. Also, these are paper losses, and Lyft’s shares could yet rebound.
Rakuten
Associated Press
Description: Largest Japanese e-commerce and internet company
Shares: 31.4 million
Stake: 11.5%
Paper loss since IPO: $518 million
General Motors
Bill Pugliano/Getty Images
Description: Largest US auto manufacturer, selling 3 million vehicles in 2018.
Shares: 18.7 million
Stake: 6.8%
Paper loss since IPO: $308 million
Fidelity
Thomson Reuters
Description: Largest privately held mutual-fund company, managing $2.5 trillion.
Shares: 18.5 million
Stake: 6.8%
Paper loss since IPO: $305 million
See the rest of the story at Business Insider
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Source: Business Insider – areddy@businessinsider.com (Arjun Reddy)