Ride-hailing app Lyft has priced its initial public offering (IPO) at $72 per share ahead of its float on the Nasdaq tomorrow, giving it a valuation of more than $24bn (£18.4bn).
The pricing is at the top end of the firm’s target range, which Lyft increased earlier this week in a sign of strong investor demand.
Read more: Lyft set to raise $2bn in New York float
The eagerly-anticipated float comes ahead of the IPO of Uber, which is expected later this year. Lyft now has a 39 per cent market share in the US ride-hailing sector, but still faces fierce competition from its arch rival.
But the listing has raised eyebrows among analysts amid speculation that the loss-making tech firm might be overvalued.
“Moving the price up shows investors are scrambling around trying to find value anywhere,” Michael Hewson, chief market analyst at CMC Markets, told City A.M.
“This is one gravy train I won’t be jumping aboard,” he added.
Lyft pulled in revenues of $2.2bn last year, but fell to a loss of $911m, with investors hoping to cash in on future growth.
Last week the company set out on an investor roadshow across the US in a bid to win over potential backers.
Russ Mould, investment director at AJ Bell, said: “Bulls of the stock will have to be patient as Lyft seems unlikely to turn a profit or generate cash anytime soon and they will see their investment subsiding Lyft’s customers’ rides.
“How patient they are prepared to be will be a key test of how well the shares do over the long term as the firm looks to prove it can turn customer growth into actual profits and cash.”