{"id":19,"date":"2019-04-18T07:27:45","date_gmt":"2019-04-18T07:27:45","guid":{"rendered":"http:\/\/wpinitiate.com\/echo-demo\/index.php\/2019\/04\/18\/pinterest-prices-ipo-above-range\/"},"modified":"2019-04-18T07:32:09","modified_gmt":"2019-04-18T07:32:09","slug":"pinterest-prices-ipo-above-range","status":"publish","type":"post","link":"http:\/\/wpinitiate.com\/echo-demo\/index.php\/2019\/04\/18\/pinterest-prices-ipo-above-range\/","title":{"rendered":"Pinterest prices IPO above range"},"content":{"rendered":"
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Pinterest <\/a> priced shares of its stock, \u201cPINS,\u201d above its anticipated range on Wednesday evening, CNBC reports. The company will sell 75 million shares of Class A common stock at $19 apiece in an offering that will attract $1.4 billion in new capital for the visual search engine.<\/p>\n

The NYSE-listed business had planned to sell its shares at between $15 to $17<\/a> and didn\u2019t increase the size of its planned offering prior to Wednesday\u2019s pricing.<\/p>\n

Valued at\u00a0$12.3 billion<\/a> in 2017, the initial public offering gives Pinterest a fully diluted market cap of $12.6 billion.<\/p>\n

The IPO has been a long time coming for the nearly 10-year-old company led by co-founder and chief executive officer Ben Silbermann <\/a>. Given Wall Street\u2019s lackluster demand for ride-hailing company Lyft, <\/a> another consumer technology stock that recently made its Nasdaq debut<\/a>, it\u2019s unclear just how well Pinterest will perform in the days, weeks, months and years to come. Pinterest is unprofitable like its fellow unicorns Lyft and Uber, but its financials, disclosed in its IPO prospectus<\/a>, illustrate a clear path to profitability. As for Lyft and Uber, Wall Street analysts, among others, still question whether either of the businesses will ever achieve profitability.<\/p>\n

Eric Kim of consumer tech investment firm Goodwater Capital <\/a> says despite the fact that Pinterest and Lyft are very different companies, Lyft\u2019s falling stock has undoubtedly impacted Pinterest\u2019s offering.<\/p>\n

\u201cThey are so close together, it\u2019s hard for those not to influence one another,\u201d Kim told TechCrunch. \u201cIt\u2019s a much different category, but they are still both consumer tech and they will both be trading at a double-digital revenue multiple.<\/p>\n

The San Francisco-based company posted revenue of $755.9 million in the year ending December 31, 2018 \u2014 16 times less than its latest decacorn valuation \u2014 on losses of $62.9 million. That\u2019s up from $472.8 million in revenue in 2017 on losses of $130 million.<\/p>\n

The stock offering represents a big liquidity event for a handful of investors. Pinterest had raised a modest $1.47 billion in equity funding from Bessemer Venture Partners, <\/a> which holds a 13.1 percent pre-IPO stake, FirstMark Capital (9.8 percent), Andreessen Horowitz (9.6 percent), Fidelity Investments\u00a0<\/a>(7.1 percent) and Valiant Capital Partners (6 percent). Bessemer\u2019s stake is worth upwards of $1 billion. FirstMark and a16z\u2019s shares will be worth more than $700 million each.<\/p>\n

Zoom \u2014 another tech company going public on Thursday that, unlike its peers, is actually profitable \u2014 priced its shares on Wednesday too after increasing the price range<\/a> of its IPO earlier this week. The price values Zoom at roughly $9 billion, nearly surpassing Pinterest, an impressive feat considering Zoom was last valued at $1 billion in 2017 around when Pinterest\u2019s Series H valued it at a whopping $12.3 billion.<\/p>\n

Profitability, as it turns out, may mean more to Wall Street than Silicon Valley thinks.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Pinterest priced shares of its stock, \u201cPINS,\u201d above its anticipated range on Wednesday evening, CNBC reports. The company will sell 75 million shares of Class A common stock at $19 apiece in an offering that will attract $1.4 billion in new capital for the visual search engine. The NYSE-listed business had planned to sell its … <\/p>\n

Continue reading “Pinterest prices IPO above range”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":20,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[75,76,23,77,78,72,79,80,81,82,83,84,85,73,4,86,87,88,74,89],"class_list":["post-19","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech","tag-ben-silbermann","tag-bessemer-venture-partners","tag-companies","tag-fidelity-investments","tag-firstmark-capital","tag-fundings-exits","tag-goodwater-capital","tag-lyft","tag-photo-sharing","tag-pinterest","tag-san-francisco","tag-search-engine","tag-series-h","tag-startups","tag-tc","tag-transport","tag-uber","tag-unicorn","tag-venture-capital","tag-world-wide-web"],"_links":{"self":[{"href":"http:\/\/wpinitiate.com\/echo-demo\/index.php\/wp-json\/wp\/v2\/posts\/19","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/wpinitiate.com\/echo-demo\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/wpinitiate.com\/echo-demo\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/wpinitiate.com\/echo-demo\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/wpinitiate.com\/echo-demo\/index.php\/wp-json\/wp\/v2\/comments?post=19"}],"version-history":[{"count":1,"href":"http:\/\/wpinitiate.com\/echo-demo\/index.php\/wp-json\/wp\/v2\/posts\/19\/revisions"}],"predecessor-version":[{"id":31,"href":"http:\/\/wpinitiate.com\/echo-demo\/index.php\/wp-json\/wp\/v2\/posts\/19\/revisions\/31"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/wpinitiate.com\/echo-demo\/index.php\/wp-json\/wp\/v2\/media\/20"}],"wp:attachment":[{"href":"http:\/\/wpinitiate.com\/echo-demo\/index.php\/wp-json\/wp\/v2\/media?parent=19"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/wpinitiate.com\/echo-demo\/index.php\/wp-json\/wp\/v2\/categories?post=19"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/wpinitiate.com\/echo-demo\/index.php\/wp-json\/wp\/v2\/tags?post=19"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}