Pinterest Inc has set a price range of $15-17 per share for the initial public offering of its 75 Million shares.
The firm annual revenue hiked by 60% i.e. $755.9 million in 2018.
The company net valuation has reduced to $11.30 Billion from $12 Billion.
US-based digital scrapbooking platform Pinterest Inc has set a price range of $15-17 per share for the initial public offering of its 75 Million shares. The latest price of the per share has valued the company lower than it was valued in 2017. Now the company valuation has reduced to $11.30 Billion from $12 Billion. The company is planning to raise $1.3 billion in net proceeds, taking into account restricted stock units and options.
Pinterest also knows as image search website is famous for the food and fashion photos that its users post. The firm reported annual revenue of $755.9 million in 2018 thus having a hike of 60% from before. But the company remained unprofitable even though its net loss narrowed to $62.97 million in 2018 from $130 million a year earlier.
According to a filing with the U.S. Securities and Exchange Commission, the company will go public with a dual-class share structure to focus voting power with Class B shareholders, which included Co-founder, President, and Chief Executive Officer Benjamin Silbermann.
Pinterest is going to join a bunch of other market majors including Levi Strauss and Lyft that are going to offer their IPO. Uber is also planning to kick its IPO by this month. From the initiation of the year, profitability has been a key point for companies that have gone public. Lyft’s shares fell down their IPO price on the second day after its debut as analysts did not see a clear path to profitability. IPOs of Pinterest and other such loss-making unicorns have created a dilemma for investors sitting on the fence since they do not want to miss out on popular companies with fast growth, but at the same time have to measure the risks of businesses with unproven economics.
Pinterest came into action in 2010 by Evan Sharp, Paul Sciarra, and Ben Silberman. It is a Mobile application and social media web company that handles a software system which can be used to discover information on the World Wide Web. It mainly focuses on GIFs, images and small scale videos. The company is also known as a catalogue of ideas that encourages users to go out and do those things.
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