Strong demand for the stocks of Lyft Inc increased the value of the combined share of its co-founders to 1.4 billion USD.
The shares of the second-largest shared travel company rose by 20% during the first trading day in New York. In the end, Friday’s growth was 9% to 78.29 USD per share, giving the company a market capitalization of about 22.2 billion USD.
The company valued its shares at 72 USD on Thursday, from an earlier range of between 62 USD and 68 USD. This increased the value of Logan Green and John Zimmer to 800 million USD and 600 million USD. The duo set up the company in 2012.
The early investors in the shared travel company logically occupy a larger position. Japan’s e-commerce company Rakuten Inc owns Class A shares worth about 2.7 billion USD. On Monday, the company said it would report a profit of 110 billion JPY (989.74 million USD) for its investment in Lyft in the quarter to the end of March.
Rakuten became Lyft’s largest shareholder with a 13% stake shortly before the IPO. Rakuten shares fell by 3% on Monday. Its stocks rose by 38% year-to-date due to investors’ growing expectations of returns on investment in technology companies. These bets include investments in the shared travel company Careem, which was acquired by Uber for 3.1 billion USD, and the photo-sharing platform Pinterest, which submitted documents for the initial public offering (IPO).
Rakuten’s financial results were under pressure from the margin squeeze in its main e-commerce unit and made an ambitious attempt to break into the mature telecoms market in Japan with the launch of telecoms services in October.
Another major investor in Lyft is the US automotive concern General Motors Co with shares of about 1.6 billion USD.
Although the CEO of Lyft, Logan Green and John Zimmer, do not have the largest shares in the business, they will have a great deal of influence through their Class B shares, each of which has the right to vote on 20 ordinary shares. This means that they will have a combined voting right of about 49% in the company.