KYS
Lyft : shares surge 21.2 percent on Nasdaq debut after IPO
LOS ANGELES (Reuters) - Lyft Inc shares on Friday opened up 21.2 percent at $87.24 in its market debut on the Nasdaq after the company was valued at $24.3 billion in the first initial public offering (IPO) of a ride-hailing startup.
On Thursday, Lyft said it priced 32.5 million shares, slightly more that it was offering originally, at $72, the top of its already elevated $70-$72 per share target range for the IPO.
After a few minutes of trading, shares were up 18.6 percent at $85.42.
Instead of celebrating the first day of trading at the Nasdaq in New York, Lyft opted to mark the occasion at a defunct auto dealership in downtown Los Angeles.
A couple hundred people — Lyft staff, family and friends, stakeholders and Los Angeles Mayor Eric Garcetti — gathered before dawn for the kick-off event.
Lyft has recently bought the facility to turn it into a driver services center, the first of several it plans to open across the U.S. in the coming months, where drivers can get discounted services like help with taxes or charging electric vehicles.
https://www.marketscreener.com/LYFT-INC-56481539/news/Lyft-shares-surge-21-2-percent-on-Nasdaq-debut-after-IPO-28261987/?countview=0
https://finance.yahoo.com/quote/LYFT?p=LYFT
Wait until the lock-ups expire on the is one.
What is a Lock-Up Agreement?
A lock-up agreement is a legally binding contract between the underwriters and insiders of a company prohibiting these individuals from selling any shares of stock for a specified period of time. Lock-up periods typically last 180 days (six months) but can on occasion last for as little as 120 days or as long as 365 days (one year). Underwriters will have company executives, managers, employees and venture capitalists sign lock-up agreements to encourage an element of stability in the stock's price in the first few months of trading.
BREAKING DOWN Lock-Up Agreement
Lock-up agreements are a common component of initial public offerings (IPO) and may be required under certain states' blue sky laws. Investors only need to look in the prospectus to find out if a new offering has lock-up agreements with key insiders. There always will be a portion of shares that are traded immediately after the IPO, so the lock-up agreements do not prevent all post-IPO volatility. However, preventing insiders from selling keeps some blocks of stock in friendly hands, allowing price discovery to take place with fewer shares overall.
https://www.investopedia.com/terms/l/lockup.asp
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