Lyft gives up debut gains on second day of trading
The ride-hailing company’s fast swoon is reminiscent of Facebook’s debut in May 2012
Bengaluru — Shares of Lyft crashed through the ride-hailing company’s initial public offering (IPO) price on just their second day of trading, tumbling as much as 10.5% and matching the speed at which Facebook gave up its IPO price following its botched offering nearly seven years ago. Lyft’s shares hit a session low of $69.12 on Monday, well below the company’s IPO price of $72. On Friday, Lyft’s shares opened at $87.24, popping 21.1% in their debut on the Nasdaq stock exchange, but later pared gains to close up 8.74% at $78.29. That valued the company at $22.2bn after its offering was 20 times oversubscribed, similar to other high-profile IPOs. Lyft’s fast swoon was reminiscent of Facebook’s debut in May 2012. After pricing at $38 a share, Facebook opened more than 10% above that at $42.05 and was up by as much as 18% at one point before fading fast and leaving the deal’s underwriters to frantically defend the IPO price into the close of that first day, which like Lyft’s was a Fri...
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