/Pinterest Prices I.P.O. at $19 a Share, for a $12.7 Billion Valuation

Pinterest Prices I.P.O. at $19 a Share, for a $12.7 Billion Valuation


SAN FRANCISCO — Pinterest on Wednesday priced its shares at $19 every for its preliminary public providing, in a signal of wholesome demand by buyers after the urge for food for fast-growing however money-losing tech corporations seemed to be on the wane.

The value valued the digital pin board firm, which lets folks save photos and hyperlinks from across the internet, at $12.7 billion. That is a little above its final personal fund-raising spherical, which had pegged the corporate at $12 billion.

By promoting at $19 a share, Pinterest raised $1.6 billion from huge buyers within the providing. The shares will start buying and selling Thursday on the New York Stock Exchange underneath the ticker image PINS.

Pinterest’s pricing may bode effectively for the numerous “unicorns” — start-ups price greater than $1 billion — which are dashing to the general public markets. It follows a rocky debut for the ride-hail firm Lyft, which went public on March 28.

These unicorns have waited longer to go public than past generations of tech start-ups, opting to raise more money from private market investors. But their lack of profits and nosebleed valuations have not always stood up to scrutiny once they went public.

While many start-up founders use their I.P.O. prospectus as an opportunity to wax poetic about their companies’ grandiose missions, the founder’s letter from Pinterest was short. It noted that “sometimes ‘what is essential is invisible to the eye,’” and thanked investors for considering the company.

The $1.6 billion that Pinterest raised is small in relation to its peers. Lyft raised $2.3 billion; Uber is expected to seek as much as $10 billion.

With $628 million in cash on its balance sheet, Pinterest has less need for money. It is also not losing as much money as Lyft or Uber. Pinterest said it had lost $63 million on revenue of $756 million in 2018. The company, which sells ads, is also growing quickly, reporting a 60 percent jump in revenue from 2017 to 2018.

The company faces stiff competition from digital advertising behemoths Google and Facebook, which owns Instagram. The company also listed Allrecipes, a recipe website; Houzz, a home improvement website; and Tastemade, a cooking content company as competitors.

In its I.P.O. prospectus, Pinterest emphasized its differences from some of those services. Pinterest is not a social media app for hanging out with celebrities or broadcasting one’s life, the company said. It is meant to be personal. The company’s 250 million monthly active users, called “pinners,” come to the site to plan their lives, including home projects, weddings and meals.

Even if Pinterest’s shares trade slightly below their last valuation, early investors in the company will reap big returns. Bessemer Venture Partners, FirstMark Capital and Andreessen Horowitz have significant stakes. Alongside Fidelity and Valiant Capital Partners, they have poured more than $1.5 billion into the company. Mr. Silbermann stands to make about $981 million from his 11 percent stake.



Source link Nytimes.com

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