IPO- LYFT Inc. Coming soon….First Quarter 2019 ?
(Reuters) – JPMorgan Chase & Co (JPM.N) is in talks about leading Lyft Inc’s upcoming initial public offering as an underwriter, after rivals Goldman Sachs Group Inc (GS.N) and Morgan Stanley (MS.N) decided not to pursue such a role out of loyalty to another IPO hopeful, Lyft’s larger competitor Uber Technologies Inc, according to people familiar with the matter.
The move illustrates the calculations that often inform the pursuit of such mandates by the world’s biggest investment banks. Goldman Sachs and Morgan Stanley have helped ride-sharing company Uber raise money in the past, and are in pole position to secure top roles in its IPO, the sources said.
Reuters first reported last year that Lyft was seeking to hire an IPO adviser that would help it select underwriters and coordinate the process.
Since then, Lyft has hired IPO advisory firm Class V Group LLC, and is eyeing a stock market flotation sometime in 2019, according to the sources. Uber has also said it is aiming for an IPO in 2019, though it is further behind in its preparations and is not yet seeking to hire underwriters.
Several other investment banks are expected to join JPMorgan as underwriters for Lyft’s IPO. There is no certainty the bank will secure the coveted „lead left“ underwriting position, the sources said.
Uber, the Next Mega IPO? 2019 ?
With a new CEO, the SoftBank investment, and the Waymo settlement, is Uber finally back on track? Clearly, these positive developments are steering the company in the right direction, but as we look ahead, three questions loom large. First, why did SoftBank invest in Uber? Second, what might SoftBank’s upside valuation scenario for Uber look like? Third, what should CEO Dara Khosrowshahi do to get ready for an Uber IPO in the next 24 months?