Monday 8 April 2019 1:35 pm

Pinterest’s valuation slips as it looks to raise $1.3bn in New York float

Social media platform Pinterest plans to raise as much as $1.3bn (£995m) when it floats on the New York Stock Exchange this year.

Pinterest will put 75m shares up for sale at its initial public offering (IPO), with a price tag of between $15 and $17 per share.

Read more: Lyft IPO paves way for flurry of tech floats in 2019

But the proposed price range puts its maximum potential valuation at $11.3bn, below the $12bn valuation it earned after a funding round in 2017.

The reduced price tag may set off alarm bells as investors and analysts keep a close eye on a series of major tech listings this year.

The San Francisco-based company, which allows users to post images in a virtual scrapbook, will be the latest so-called unicorn firm valued at more than $1bn to debut on the stock exchange.

Ride-hailing app Lyft has suffered volatile trading since its $24bn float last month, sparking fears its stock may have been overpriced.

Lyft’s difficulties will be an important litmus test for rival Uber, which is planning a New York float that could value the company at more than $120bn.

Last week it emerged Uber has enlisted the help of Morgan Stanley to ensure the first few hours of trading go smoothly.

Read more: Morgan Stanley tapped to steer Uber through IPO

Much like the other tech unicorns, Pinterest has posted large revenues, but is yet to turn a profit. However, the firm more than halved its losses last year from $130m down to $63m.

Goldman Sachs, JP Morgan and Allen & Co will act as lead underwriters for the float.