Pinterest raises $1.4 billion in IPO in sign of sustained demand after Lyft struggles

Pinterest Inc said on Wednesday it raised around $1.4 billion in its initial public offering (IPO), fetching a roughly $12.66 billion valuation, above its expectations.

Pinterest, the online scrapbook where users save ideas for clothes, décor and recipes, said it priced its initial public offering at $19 per share, above its $15-$17 target range.

Its performance will be a key test of the tech IPO market after the stock market debut of ride-hailing start-up Lyft Inc at the end of last month.

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Lyft shares have dropped around 17 percent from its IPO price, raising concerns about bigger rival Uber Technologies Inc when it prices it IPO next month.

A key difference between Pinterest and Lyft however were their valuation expectations. Lyft was seeking a valuation of up to $24.3 billion in its IPO, higher than the $15 billion valuation it attained in its latest private fundraising round in 2018.

Before the IPO, Pinterest had been weighing a valuation at or near its last private fundraising in 2017, when it was valued at $12.3 billion.

Lyft`s losses last year at $911 million also dwarfed the $63 million loss of Pinterest.

In the IPO, Pinterest priced 75 million shares at $19 per share, above its $15-$17 target range and ending up attaining a higher valuation.

Pinterest is due to start trading on the New York Stock Exchange on Thursday under the symbol "PINS".

Goldman Sachs & Co LLC, JPMorgan and Allen & Company are the lead underwriters on the Pinterest IPO.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)