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Lyft founders want to earn more than $ 1 billion on the company's IPO



The long-awaited day is finally here: Lyft goes public.

The Ride Hail company will commence trading on the Nasdaq Stock Exchange on Friday at an initial price of $ 72 per share or a total valuation of $ 72 approximately $ 21 billion.

This last-minute increase fueled by one-stand meetings during its roadshow for investors has contributed to the total lending by Lyft's co-founders totaling more than $ 1 billion.

Here is the breakdown:

  • Logan Green: 684,591 Class A Shares and 7,689,182 Class B Shares totaling $ 602.9 million at IPO prices.
  • John Zimmer: 684,591 Class A shares and 5,090,527 Class B shares worth $ 41
    5.8 million at IPO prices.

The two founders are not the only ones to get rich with Lyft's massive IPO, but they will retain a majority of voting rights in corporate bonds, thanks to the company's dual-class structure.

The controversial separation between the constituencies will allow Green and Zimmer to "have a significant impact on matters requiring shareholder approval, including the election of directors and significant corporate transactions, such as a merger or other sale of our business or his assets. "

This has rubbed the wrong path for many industry observers, such as the Council of Institutional Investors. The Group's Managing Director wrote a letter to Lyft's Board of Directors in February saying, "Public companies should grant voting rights to all shareholders that are proportional to their holdings."

Apart from the governmental structures, many other investors want to get rich. As Julie Bort of Business Insider reported from the company's first S-1 documents, other early investors could also see a massive windfall.

  • COO Jon McNeill, who joined Tesla in 2018, holds 736,932 shares worth $ 5.3 million.
  • Sean Aggarwal, known for his roles as Vice President of Finance for eBay, PayPal and Trulia, joined the Lyft Board of Directors in 2016. Its approximately 1.41 million shares were worth about 101 million US dollars at IPO prices.
  • The largest automaker in the US, General Motors, and the financial giant Fidelity each own almost 19 million shares, or about 8% of the company. On the IPO of the IPO on Friday, these shares could have a value of $ 1.37 billion for the respective investors of the companies.

Further Lyft IPO coverage:


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