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Lyft IPO's Biggest Winner May Be Startups' Private Valuations

  • Upsized, above-target listing seen as good sign for unicorns
  • Ride-hailing company’s debut gives it $22.4 billion value
Lyft co-founders Logan Green and John Zimmer discuss the second-largest ride-hailing company’s trading debutSource: Bloomberg
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Tech unicorns got a bounce in their step with Lyft Inc.’s initial public offering valuing it at $22.4 billion after its first day of trading.

Ride-hailing’s No. 2 provider in the U.S. first raised its target range and then expanded its offering to raise $2.34 billion. While the shares closed Friday up only 8.7 percent compared with the 21 percent surge at the opening bell, that’s still a validation by public investors of the company’s pre-IPO valuation, said Barrett Daniels, a Deloitte partner who specializes in IPOs.